KOCHI – In a major development on Thursday, the City Hospital on M.G. Road, Ernakulam, was officially seized by the Tata Capital Group due to a massive loan default. The action was taken to recover an outstanding debt of ₹46 crore owed to the financial institution.
The seizure, executed on the order of the Ernakulam Chief Judicial Magistrate (CJM) court, was carried out under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.
At the time of the seizure, there was one patient still undergoing treatment, while all other patients had been shifted from the premises. The enforcement action took place in the afternoon, with officials taking control of the hospital building and assets.
According to the hospital’s management, attempts were made to resolve the financial crisis by selling the property. However, these efforts were unsuccessful as the hospital’s valuation was not satisfactory, and potential buyers failed to arrive in time to complete the transaction, leading to the legal action by Tata Capital.
The incident highlights the growing financial distress faced by some private healthcare institutions. The swift legal action by Tata Capital has brought the hospital’s operations to a halt, leaving the future of the facility and its staff uncertain.
