Pune: Sahyadri Hospitals Clarifies Land Lease Status After PMC Notice after Deal with Manipal Hospitals
Reported by Mubarak Ansari
Pune, 17th July 2025: Sahyadri Hospitals has issued a detailed clarification in response to media reports and a notice from the Pune Municipal Corporation (PMC) regarding its land lease agreement and recent change in ownership. The development follows PMC’s notice to Konkan Mitra Mandal Medical Trust (KMMMT) after Manipal Hospitals Group reportedly acquired Sahyadri Hospitals in a ₹6,400 crore deal.
Responding to the ongoing controversy, Dr. Amitkumar Khatu, Chief Legal and Compliance Officer of Sahyadri Hospitals Group, assured that the equity transaction will not affect the hospital’s functioning, ethos, or commitment to patient care across any of its units in Maharashtra.
“This transaction is a transfer of equity shares in Sahyadri Hospitals Private Limited, and is not the first of its kind. Previous stake transfers have not impacted our operations or patient services. The current acquisition will similarly have no bearing on the functioning of any of our hospitals,” Dr. Khatu stated.
PMC Seeks Clarification Over Lease Terms
The dispute centers on a 1,976 sq.m. plot in Erandwane leased by PMC to KMMMT for 99 years in 1998 at a premium of ₹53.35 lakh and a nominal annual rent of ₹1. The lease prohibits the trust from subletting or transferring the land or its infrastructure without prior approval from the PMC Commissioner.
Following media reports that the hospital had effectively come under Manipal’s control, PMC issued a notice seeking clarification on whether lease terms were violated.
The civic body has asked the trust to submit:
Agreements between KMMMT and Sahyadri, and between Sahyadri and Manipal.
Any documentation of mortgage or financial encumbrance on the land.
PMC Commissioner’s prior approval, if applicable.
Proof of premium payment to the PMC treasury.
Sahyadri: Trust Structure Intact, No Lease Violation
Sahyadri Hospitals emphasized that its Deccan Hospital in Pune, which operates under the charitable trust model, continues to function under the same legal structure, and the land lease remains unaffected by the equity deal.
“The land was leased upon full payment of premium and 99 years of lease rent. This agreement remains intact and unrelated to the equity transfer. The trust has not transferred, sublet, or mortgaged the land,” Dr. Khatu clarified.
He reiterated that the trust continues to fulfill its social obligations under the lease by providing free treatment to patients referred by PMC.
Compliance with Free Treatment Commitment
According to Sahyadri Hospitals, the PMC lease agreement mandates 50 bed days per year for free treatment, a requirement the trust has consistently exceeded.
“Over the past few years, we have averaged 260 bed days annually for PMC-referred patients. No such patient has ever been denied treatment,” the hospital stated. “Our social work department facilitates this process to ensure that eligible patients benefit from subsidized or free care.”
PMC Additional Commissioner Prithviraj BP confirmed that 39 patients were referred to Sahyadri last financial year, and three patients have been referred in the current fiscal year till May 2025.
No Need for PMC Approval in Equity Deal
Sahyadri further clarified that the equity transaction between Ontario Teachers’ Pension Plan (OTPP) and Manipal Hospitals pertains solely to the sale of equity shares in Sahyadri Hospitals Private Limited. The trust is not a party to the transaction, and as per current legal frameworks, PMC approval is not a regulatory requirement for such a deal.
“We deeply value the trust of the people of Pune and Maharashtra. The care we provide remains unchanged—compassionate, accessible, and of the highest quality,” Dr. Khatu said, urging the public not to be swayed by misinformation.
