After remaining non-operational for over eight years, the Brihanmumbai Municipal Corporation (BMC) is preparing to revive the Seven Hills Hospital in Marol, Andheri East under a public-private partnership (PPP) model. Capri Global Holdings Private Limited has emerged as the frontrunner to operate the hospital, which has remained shut since 2018.
A proposal to finalise the appointment is expected to be presented before the civic improvements committee on Wednesday, May 20.
Under the proposed agreement, the BMC will lease the 66,000-square-metre hospital property to Capri Global for 30 years at an annual rent of ₹10 crore. The agreement includes a 1% rent escalation every 10 years and an option to extend the lease for another 30 years.
Once operational, the hospital will function as a 1,500-bed multi-speciality facility. As part of the arrangement, 20% of the beds — amounting to 300 beds — will be reserved for patients referred from civic hospitals. These patients, including those availing outpatient department (OPD) services, will receive treatment at BMC-approved rates.
Seven Hills Hospital had played a significant role during the Covid-19 pandemic, serving as a major Covid care centre for residents in Mumbai’s western suburbs. However, the project has long been surrounded by controversy and legal disputes.
The hospital project was originally launched in 2004 when the BMC awarded the contract to Soma International under a similar PPP arrangement. Civic officials later alleged that the operator failed to fulfil contractual obligations, with only 306 beds becoming operational instead of the promised full capacity. In addition, unpaid property taxes and other civic dues reportedly rose to ₹140.88 crore over the years.
In 2018, the BMC terminated the agreement with the operator, leading to prolonged legal and insolvency proceedings. The civic body argued before the National Company Law Tribunal (NCLT) that ownership and control of the land and public healthcare infrastructure remained with the BMC and could not be governed solely through insolvency mechanisms.
During the insolvency process, both Capri Global Holdings Private Limited and Jupiter Lifeline Hospitals Private Limited submitted resolution plans for reviving the project. According to the BMC, Jupiter’s proposal sought waivers on municipal dues, making Capri Global’s offer more favourable for the corporation.
As part of the fresh settlement, Capri Global has agreed to invest ₹400 crore over the next five years to modernise and operationalise the hospital. The company will directly pay ₹183.51 crore to the BMC towards pending lease rent, property tax and other dues associated with Seven Hills Healthcare Private Limited. Another ₹39.97 crore will be paid once pending receivables are realised, taking the total settlement amount to ₹223.48 crore.
The proposed agreement also permits the company to develop supporting and commercial facilities within the premises. These may include pharmacies, diagnostic centres, restaurants, communication booths, guesthouses for patients’ relatives, recreation centres, gymnasiums, medical institutes and other permissible facilities under Development Control Regulations.
According to the BMC’s note dated April 21, 2026, Capri Global will be required to complete the revival project within five years from the date of handover while continuing the mandatory 20% reservation scheme for economically weaker patients under a new memorandum of understanding with the civic body.