NCLT approves Capri Global’s ₹456 crore resolution plan for Mumbai Hospital of Seven Hills Healthcare

The National Company Law Tribunal’s Amaravati Special Bench has approved a ₹456 crore resolution plan for Mumbai hospital of Seven Hills Healthcare. The resolution plan also includes an additional CIRP costs of approximately ₹205.34 crores and a separate ₹223.48 crore settlement with the Municipal Corporation of Greater Mumbai, finally bringing an end to the long-standing insolvency proceedings of the corporate debtor. The plan, submitted by Capri Global Holdings Private Limited and backed by the Reliance Group as an equity support provider, focuses specifically on the Mumbai hospital assets while the Vizag facility had already been resolved separately in 2024.

The approval, granted by Hon’ble Member (Judicial) Kishore Vemulapalli on January 19, 2026, comes after a tumultuous corporate insolvency resolution process that first began in March 2018. The journey was far from smooth—an earlier resolution plan in favour of Dr. B.R. Shetty was set aside by the Supreme Court in November 2019 on the grounds that any plan affecting the Mumbai hospital’s land required prior approval from the MCGM under the Mumbai Municipal Corporation Act. To make matters worse, the hospital was requisitioned as a COVID-19 treatment facility, causing further delays and extensions.

The financial contours of the approved plan are substantial. Secured financial creditors, who had admitted claims of over ₹1,122 crores, will receive ₹449.10 crores, translating to a recovery of approximately 40.02 per cent. Operational creditors, including employees and statutory authorities, have also been provided for, with employees receiving ₹2 crores against admitted claims of ₹9.91 crores and other operational creditors getting ₹4.60 crores.

What makes this resolution particularly noteworthy is the structural transformation built into the plan. As an integral part of the resolution, a Scheme of Arrangement has been approved that will see the complete cancellation of the existing share capital and the conversion of Seven Hills Healthcare from a company limited by shares into a company limited by guarantee without share capital. In practical terms, this means the Mumbai hospital will operate as a not-for-profit Section 8 company, with any surplus generated mandatorily reinvested into expanding healthcare infrastructure. The Reliance Foundation Hospital Trust, a public charitable trust, will be admitted as the sole guarantor, taking over from the existing guarantors who stand discharged.

The implementation roadmap is clearly laid out. Within 30 days of the order, the hospital is to be handed over, funds infused, and payments made to stakeholders in the prescribed priority. A monitoring committee comprising one nominee each from the Committee of Creditors and the resolution applicant, along with the resolution professional as chairman, will oversee the process until the new board takes over. The business plan envisions ramping up bed capacity from 300 to 1,500 beds over five years, with investments in medical equipment, IT systems, and infrastructure upgradation.

On the regulatory front, the MCGM’s no-objection, issued on December 15, 2025, following directions from the NCLAT, was crucial in clearing the path. The NCLT has made it clear that while civil claims not forming part of the plan stand extinguished in line with Supreme Court rulings in Ghanashyam Mishra and Essar Steel, it cannot grant blanket exemptions from stamp duty or statutory taxes. Certain reliefs sought by the resolution applicant were rejected or modified, particularly those seeking immunity from environmental compliance or tax liabilities.

With this approval, the moratorium under Section 14 of the Insolvency and Bankruptcy Code ceases to have effect, and the resolution professional is directed to hand over management and records to Capri Global. The Registrar of Companies will issue a fresh certificate of incorporation reflecting the new structure as a company limited by guarantee. Periodic status reports are to be filed until full implementation, ensuring transparency and oversight. This resolution not only maximizes value for creditors but also preserves a vital healthcare asset for public benefit, aligning with the core objectives of the insolvency framework.

Key Financial Highlights

• Total Infusion: ₹456 crores + actual CIRP costs (approx. ₹205.34 crores) + actual Standstill Period costs.
• MCGM Dues: ₹223.48 crores to be settled separately.
• Financial Creditors’ Payout: ₹449.10 crores, resulting in a recovery of 40.02% for secured financial creditors.
• Operational Creditors: The plan allocates ₹2 crores for employees and ₹4.60 crores for other operational creditors.
• Total Resolution Amount: Approximately ₹884.82 crores, including the settlement amount to MCGM.

Also See: MGM Healthcare acquires SevenHills Hospital in Vizag for Rs 171 crore