Niramaya Hospital Pune Closure Lic Loan Default

LIC Housing Finance Ltd, which extended a Rs 71-crore loan to the hospital, has published public notices calling on the management to stop admitting new patients immediately. In newspaper notices published last week, LIC HFL appealed to the management of Niramaya Hospital to comply with court directions, transfer existing patients elsewhere, and hand over vacant possession of the mortgaged property. The lender clarified that it does not operate the facility and disclaimed all liability for any consequences or losses arising from patient treatment, transfers, or non-compliance with court orders, stating that full responsibility rests solely with the hospital's management. The enforcement push follows a June ruling by the Debt Recovery Tribunal (DRT) in favour of LIC HFL, which directed the hospital to transfer patients and vacate the premises. Following an August 29 notice by LIC HFL declaring its intent to take physical possession, the hospital management moved the Bombay High Court for a stay. Hospital sources noted that the High Court has temporarily permitted them to admit emergency patients pending further hearing. Management disputes claimed dues Dr Kisan Munde, director of Niramaya Hospital, said that the Rs 71-crore mortgage loan was secured in 2015 to construct a new hospital building, and EMIs exceeding Rs 1 crore per month were paid regularly without default until late 2022. "Till December 2022 and the beginning of 2023, we had paid Rs 65 crore," Dr Munde said. "After that, we could not pay the amount. LIC HFL is now saying that we owe them Rs 137 crore. We don't agree with its contention and have therefore approached the high court seeking justice." Construction on the new hospital building, located adjacent to the current facility, stands 60 per cent complete but has halted due to a lack of funds. Located on the Pune-Mumbai highway, the hospital employs over 400 staff members. Along with Dr D Y Patil Hospital and Lokmanya Hospital, Niramaya is widely regarded as a major affordable healthcare institution in the region. Currently, 30 patients remain admitted at the facility, all in the intensive care unit (ICU). "We are admitting only serious patients," Dr Munde said. Local activist Avinash Chilekar expressed concern over the institution's potential shutdown. "The hospital has had top-quality doctors and is known for reducing the bills of needy patients," Chilekar said. "LIC is a government organisation. It can allow the hospital time to pay the EMI. If the hospital is closed, the poor and needy patients will suffer, as Pimpri-Chinchwad lacks hospitals like Niramaya."