Issues Notice: Pune Municipal Corporation has sent a notice to Konkan Mitra Mandal Medical Trust over a possible lease violation concerning land leased to Sahyadri Hospital in Erandwane.
Concern Over Manipal Acquisition: The notice comes after Manipal Hospitals Group acquired Sahyadri Hospitals in a ₹6,400 crore deal, raising concerns about subletting or transfer without PMC approval.
Sahyadri Denies Violation: The hospital group clarified that only company shares were transferred, not the leased land, and all existing terms with PMC remain intact.
Pune, 18 July 2025: The Pune Municipal Corporation (PMC) has sought an explanation from Konkan Mitra Mandal Medical Trust regarding the land leased to Sahyadri Hospital in Erandwane. The move comes after Manipal Hospitals Group recently acquired Sahyadri Hospitals in a ₹6,400 crore deal, raising concerns over a potential breach of lease terms.
The land in question, a 1,976 sq.m. plot, was leased by PMC to the trust in 1998 for 99 years. The lease agreement clearly prohibits subletting, renting, or transferring the property without prior approval from the civic body. In light of the acquisition, the PMC has asked the trust to submit documents clarifying whether the terms of the lease have been violated.
The trust has been given seven days to provide details of the agreements between itself, Sahyadri Hospital, and Manipal Hospitals Group. The civic body also requested evidence of any approvals taken and records of lease-related payments.
Sahyadri Hospitals has responded to the issue, saying the transaction involved only the transfer of equity shares within Sahyadri Hospitals Private Limited and did not affect the lease agreement or hospital operations in Erandwane. A representative from the group said that services under the PMC lease, including free treatment for referred patients, will continue without interruption.
The hospital further assured that its Deccan unit, which operates under a charitable trust, remains fully functional and unaffected by the deal. They urged the public not to fall for speculation, stating that Sahyadri remains committed to providing quality and accessible healthcare across the state.
PMC officials are currently reviewing the documents submitted. Action will be taken if any violation of lease conditions is confirmed.
