BMC seals administrative office of Seven Hills hospital for non-payment of property tax

Andheri-based Seven Hills hospital has run into major financial problems and owes money to various authorities. The latest is, the officials of property tax and assessment department of the Brihanmumbai Municipal Corporation (BMC) have sealed the ground floor of the administrative office of Seven Hills healthcare Pvt. Ltd at Andheri on Thursday.

The move has come after the hospital authority failed to pay the undisputed arrears of property tax to the tune of Rs 9 crore to the corporation. The last date of payment of arrears was February 28, 2018. However, the hospital authority failed to make the payment therefore on the instruction of Additional Municipal Commissioner (AMC) the action has bee taken. The hospital owes total Rs 47 crore in property tax said the civic source.

The BMC has also issued a show cause notice to the management of the Seven Hills hospital in the month of January 28, 2018, asking why they should not terminate its land lease agreement. The hospital owes the civic body over Rs 100 crore dues.

The show cause notice issued stated several violations in the Memorandum of Understanding (MoU) signed by the hospital with BMC in 2013. The report mentions Rs 90 crore as lease rent, of which Rs 76 crore is pending as dues. It further claims that the management owed the civic body Rs 2.5 crore per year since 2013 as a penalty for failing to complete the construction of a building that year.

While the hospital authorities were unavailable for any comment.