Financial Firm Seizes Kochi Hospital Amid Parent Company Debt Crisis

Quick Summary

• Hospital Possession: City Hospital, located on M.G. Road, was taken over by Tata Capital under the SARFAESI Act due to loan defaults by its parent company, amounting to ₹35 crore of outstanding debt.
• Patient & department Status: Of seven admitted patients, six were discharged or transferred; one post-surgery patient remained under care and will be discharged shortly. Only the IVF unit remains operational for a procedure scheduled on Sunday.
• Process Details: The takeover process began Wednesday morning with court orders and presence of Health and Police officials. Security personnel are now redirecting incoming patients to nearby facilities.
• Deadline for Equipment Removal: The hospital has been given seven days to remove non-mortgaged equipment before final possession is handed over.
• Loan History & Settlement Attempt: Parent company took loans totaling ₹46.63 crore (2019: ₹39.63 crore; 2021: ₹6.93 crore). After properties were attached in Mumbai, debt reduced to ₹35 crore. Officials sought a ₹5 crore upfront payment for settlement but did not receive compliance.
• Next steps: Financial firm will issue a 30-day Right to Redemption notice before initiating e-auction proceedings.

Indian Opinion Analysis

The possession of City Hospital under the SARFAESI act highlights the serious financial pressures faced by some healthcare institutions in india when unable to manage debts effectively amidst rising operational costs and competitive healthcare demands. Transitioning control mid-service raises logistical challenges that could disrupt patient care momentarily but seems managed here with precautions ensuring continuity for specific treatments like IVF.

This case underscores the meaning of robust financial controls within essential services like private healthcare that directly impact public welfare while adhering strictly to legal protocols during enforcement measures such as property auctions under SARFAESI rules.

Efforts towards negotiated settlements-such as Tata Capital’s request for partial repayment-signal option approaches that may have minimized disruption but failed due to non-compliance from hospital management or owners.

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