City Hospital, a well-known private healthcare institution nestled on MG Road in the heart of Kochi, has been physically taken over by a private financial firm. This significant action was carried out under the SARFAESI Act, reportedly stemming from the parent company’s failure to repay a loan, leading to an approximate debt of ₹35 crore.
The takeover immediately impacted patient services. Out of seven admitted patients, all but one, who had recently undergone hernia surgery, were either discharged or moved to other facilities. A single nurse was allowed to remain to care for the post-operative patient, who is expected to be discharged shortly. Furthermore, all hospital departments, with the exception of the IVF unit, were temporarily closed to ensure continuous care for a patient scheduled for a procedure on Sunday.
Reports indicate that the hospital received notice of the impending takeover on Tuesday, with explicit instructions to halt new admissions and scheduled surgeries. Officials from Tata Capital began the possession process around 11 a.m., backed by a court order and in the presence of both health and police department representatives. The procedure lasted until approximately 5:30 p.m., after which security personnel were stationed to redirect any arriving patients to nearby medical centers.
The hospital has reportedly been given a seven-day window to remove any non-mortgaged equipment and fully hand over the premises to the financial firm. While senior hospital administrators were unavailable for comment, several doctors confirmed the takeover. It is understood that the hospital has pledged to make a payment within a week, though this remains unverified by independent sources.
According to the financial firm, the hospital owner’s parent company initially borrowed ₹39.63 crore in 2019, followed by an additional ₹6.93 crore in 2021. Tata Capital representatives confirmed that after attaching certain properties in Mumbai, the total outstanding debt was reduced from ₹46.63 crore to roughly ₹35 crore.
“We had urged the hospital owners to make an upfront payment of at least ₹5 crore and proceed with a one-time settlement to prevent this attachment, but they failed to comply,” explained sources from the financial firm. “They will now receive a 30-day Right to Redemption notice, after which we will initiate steps to e-auction the property, which spans approximately 92 cents.”
The financial firm first began proceedings under the SARFAESI Act in March 2023, taking symbolic possession of the property in July of the same year.