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PMC seeks clarification from trust operating Sahyadri Hospital on land lease, transfer to Manipal Group
The move comes a day after the Manipal Hospitals Group announced its acquisition of Sahyadri Hospital from global investor, Ontario Teachers’ Pension Plan Board, in a deal valued at around ₹6,400 crore
The Pune Municipal Corporation (PMC) on Wednesday served notice to the Konkan Mitra Mandal Medical Trust, which operates Sahyadri Hospital, seeking clarification regarding the lease terms of a prime land parcel in Erandwane and its reported transfer to the Manipal Hospitals Group. The move comes a day after the Manipal Hospitals Group announced its acquisition of Sahyadri Hospital from global investor, Ontario Teachers’ Pension Plan Board, in a deal valued at around ₹6,400 crore.
Whereas the said land parcel admeasuring 1,976 square metres was leased to the Konkan Mitra Mandal Medical Trust for 99 years under a registered agreement dated February 27, 1998. The land was allotted for a premium of ₹53.35 lakh, with an annual rent of ₹1. The Konkan Trust is explicitly barred from subletting or transferring the property or any part of the Sahyadri Hospital premises without prior written approval from the municipal commissioner.
As such, the Manipal Hospitals Group’s announcement of its acquisition of Sahyadri Hospital has raised serious concerns over potential violations of the original lease conditions.
The PMC notice cites clause 8 of the registered agreement and points out that the land or any construction on it cannot be subleased, transferred, or rented out to any other party, except in collaborations essential for running the hospital. Even in case of such collaborations, the same must be limited to service providers and cannot involve changes in ownership or financial control. Whereas clause 9 of the registered agreement further bars the Konkan Trust from mortgaging, gifting, or placing any encumbrance on the property. If the land is to be mortgaged for hospital construction purposes, prior approval from the municipal commissioner is required.
The PMC has asked the Konkan Trust to submit copies of all agreements signed with Sahyadri Hospital or with the Manipal Hospitals Group. It has also sought details on whether the land has been mortgaged or pledged as security with any financial institution, and if so, whether the required permissions were obtained from the civic body.
Vasundhara Barve, deputy commissioner, property department, PMC, said, “The Konkan Trust has been given a seven-day deadline to submit all relevant documents and clarifications. Additionally, we have asked for receipts confirming that the full premium amount was deposited with the municipal treasury.”
On its part, the Konkan Trust said, “The PMC notice says submit the reply in seven days. We will submit the reply with all necessary documents to the authorities.”
