BBMP to take back land leased to Bhagwan Mahaveer Jain Hospital

It is bad news for Bhagwan Mahaveer Jain Hospital (BMJH) in Vasanth Nagar after the Bruhat Bengaluru Mahanagara palike (BBMP) found the hospital resorting to wrongdoings and violating its lease agreement with the civic agency. The BBMP has decided to take back the four-acre property in Vasanth Nagar, which it had leased to Bhagwan Mahaveer Jain Hospital on a 99-year lease in 1976.

The BBMP has accused the hospital management for raising a loan of Rs 65 crore for the construction of 200-bed multi-specialty hospital on its premises despite the BBMP rejecting the no objection certificate to it. BBMP’s estate department officials have now recommended joint commissioner (east) to issue a show-cause notice to take over the hospital property. And anticipating that the hospital management might get ready for a legal battle, the BBMP legal officials have also been asked to file a caveat in the court.

Shockingly, the file pertaining to BMJH was kept in abeyance since 2012. Even BBMP officials were shocked after they received a letter from the hospital management claiming that they had mortgaged the hospital premises – built on BBMP land – for Rs 65 crore. According to the documents available with BM, the then BBMP commissioner had sought legal opinion on May 19, 2012, on the issue. The legal head had also rejected the request made by the hospital management to pledge the BBMP property for raising a loan.

It had said the land belongs to the BBMP and it was leased to the hospital to run for a charitable purpose. As the owner of the land is BBMP, it cannot issue no objection certificate for raising a loan. Moreover, it also does not have any provision under the Karnataka Municipal Corporation Act. However, during the investigations, the BBMP’s estate department found that despite rejecting the proposal of BMJH, the hospital management had managed to take a loan of Rs 65 crore from the Punjab National Bank – a major violation of the lease agreement executed between the BBMP and BMJH.

The hospital management, which wrote back to BBMP on July 11, 2016, stated that it had pledged BBMP’s land on which it has built Jain Hospital building, and that the machinery inside the hospitals had been pledged for raising the loan.

The issue

The BMJH is built on four acres of land taken on a 99-year lease from the civic body in 1976. Although the hospital management is paying Rs 100 per annum as lease agreement to the civic agency, the BBMP said it had violated the lease agreement by sub-leasing a part of its premises to Punjab National Bank for Rs 8,500 per month; and a canteen run on a monthly rental income of Rs 75,000.

The hospital also charges visitors and patients’ attenders for parking in its premises. The drama began when the hospital sought a no-objection certificate from the BBMP to pledge the building which is built on BBMP land to raise a loan. The hospital management took intervention from then BJP chief minister DV Sadananda Gowda (now Union minister for statistics), who in writing asked the then BBMP commissioner MK Shankarlinge Gowda to take suitable action on the hospital’s request.

BM had broken the story under the title “Jain Hospital wants to pledge BBMP property” on June 12, 2012.

Credits Bangalore Mirror

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