Thu Sep 18 17:51:16 UTC 2025: **Summary:**

A private financial firm, KOCHIA, has taken possession of City Hospital in Kochi under the SARFAESI Act due to the hospital’s parent company’s failure to repay loans totaling approximately ₹35 crore. Patients were discharged or transferred, except for one post-surgery patient who is being attended to. Most departments were shut down, with the exception of the IVF unit to complete a scheduled procedure. The hospital administration had been notified of the takeover and was given a week to remove non-mortgaged equipment. The financial firm initiated SARFAESI proceedings in March 2023 and will issue a 30-day redemption notice before e-auctioning the property.

**News Article:**

**KOCHI Landmark City Hospital Seized by Financial Firm Over Debt**

**KOCHI, September 18, 2025 (The Hindu) –** City Hospital, a long-standing private healthcare institution on MG Road in Kochi, was taken over by KOCHIA, a private financial firm, today. The seizure occurred under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act due to the hospital’s parent company defaulting on loans amounting to approximately ₹35 crore.

According to sources, the hospital’s Mumbai-based parent company took out an initial loan of ₹39.63 crore in 2019, followed by another ₹6.93 crore in 2021. Despite efforts to reduce the debt through the attachment of other properties, a substantial amount remained outstanding. KOCHIA representatives stated that they had requested a ₹5 crore upfront payment for a one-time settlement, which the hospital failed to provide.

The takeover process began around 11 a.m. and continued until 5:30 p.m., with Tata Capital officials, armed with a court order and accompanied by health and police department representatives, overseeing the operation. Security personnel were deployed to redirect patients to other nearby hospitals.

Most of the hospital’s patients were discharged or transferred, with the exception of a single post-operative patient who will be discharged on Friday. The IVF department will remain operational to complete an existing treatment plan. The hospital has reportedly been granted seven days to remove non-mortgaged equipment.

While senior hospital administrators were unavailable for comment, doctors confirmed the takeover. KOCHIA initiated SARFAESI proceedings in March 2023 and will now issue a 30-day Right to Redemption notice before proceeding with an e-auction of the 92-cent property.

The seizure of City Hospital raises concerns about the future of healthcare access in the region and the impact on the hospital’s staff and patients.

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