Pune Sahyadri Hospital Land Controversy: PMC Seeks Clarification on Rs 6,400 Crore Manipal Deal
Reported by Mubarak Ansari and Varad Bhatkhande
Erandwane, 16th July 2025: A fresh controversy has surfaced regarding the transfer of land leased to Sahyadri Hospital in Pune’s Erandwane area. The Pune Municipal Corporation (PMC) has issued a notice to the Konkan Mitra Mandal Medical Trust after reports suggested the hospital premises may have been handed over to the Manipal Hospitals Group.
Recently, Manipal Hospitals acquired Sahyadri Hospitals in Pune for approximately ₹6,400 crore.
The 1,976 sq.m. plot was leased to the trust for 99 years at a premium of Rs 53.35 lakh and a symbolic annual rent of Rs 1. The agreement, registered on 27th February 1998, is legally binding. The trust signed an MoU with Sahyadri Hospital on 30th September 2006. However, the alleged transfer of control to Manipal Hospitals has raised serious questions about adherence to lease terms.
Clause 8 of the original lease prohibits the trust from renting, subletting, or transferring any part of the land or constructed building to another party, though it allows operational partnerships to support hospital functioning. Clause 9 states that the land cannot be mortgaged, donated, or encumbered without prior approval from the PMC Commissioner, except to raise funds for hospital construction through recognized financial institutions.
In response, PMC’s Deputy Commissioner (Estate and Management Department) Vasundhara Barve has asked the trust to submit the following within seven days:
1. Copies of agreements between the trust and Sahyadri Hospital, and between Sahyadri and Manipal Hospitals Group.
2. Documentation of any mortgage or financial encumbrance on the property.
3. A copy of PMC Commissioner’s prior approval, if the land was mortgaged.
4. Proof of full premium payment made to PMC’s treasury.
When contacted, Konkan Mitra Mandal Medical Trust mentioned, “The letter says submit the reply in 7 days. We shall submit the reply with all necessary documents to the authorities.”
Note: Manipal Hospitals’ statement will be added after it is received.
