Sevenhills Hospital, Mumbai
Once again a big corporate stir has intensified regarding Mumbai’s famous Seven Hills Hospital. This is the reason why the sale of the hospital has been stuck again and again. It was in this hospital that Amitabh Bachchan’s granddaughter and Aishwarya Rai’s daughter Aaradhya were born. According to an ET report, now two big players are facing each other in the race to buy this big hospital with about 1500 beds.
On one side is NK Holdings, a company backed by Mukesh Ambani’s Reliance Industries, and on the other side is Jupiter Hospitals. Both have proposed about Rs 450 crore to buy the hospital, but there is a big difference in the method of payment.
Difference in payment becomes decisive issue
Jupiter Hospital has proposed that the entire amount of Rs 450 crore will be paid in lump sum within 30 days of getting approval from the bankruptcy court. Reliance-backed NK Holdings has offered to repay the same amount in a phased manner in five years. Now the final decision has to be taken by the creditors.
Legal confusion increased the difficulty
The land on which SevenHills Hospital is built belongs to the Municipal Corporation of Mumbai (MCGM). A legal dispute has been going on for years regarding the rent and lease of this land. The Municipal Corporation has asked for outstanding rent of more than Rs 140 crore, on which the final agreement has not been reached yet.
The deal has been stuck before too
This is not the first time an attempt is being made to sell SevenHills. In the year 2019, the court had approved a proposal of Rs 1,000 crore of a medical group, but after the objection of the Municipal Corporation, the matter reached the Supreme Court and the deal was cancelled. After this the Covid pandemic came, due to which the entire process was put on hold.
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Visakhapatnam hospital has already been sold
SevenHills Healthcare earlier had two hospitals, one in Mumbai and the other in Visakhapatnam, in view of the long delay, the court allowed them to be sold separately. The hospital in Visakhapatnam has been sold for about Rs 171 crore in 2024, while the one in Mumbai is still stuck in legal complications.
Big pressure on creditors too
The total debt on SevenHills is said to be more than Rs 1,300 crore. Most of this amount belongs to banks and financial institutions. The creditors want the deal to be completed without any hiccups this time, so that they can get at least some amount of compensation.