West Bengal Housing Infrastructure Development Corporation (Hidco) has ordered PKG Medical College Hospital in New Town to change the designated land use from “information technology” to “institutional” and demanded Rs 122 crore as conversion fees, according to officials familiar with the matter.
The notice, sent about 10–12 days ago, states the hospital was built on land earmarked for the IT sector in New Town’s DH Block without altering its land-use status. The New Town Kolkata Development Authority (NKDA) has refused to renew the hospital’s trade licence, which expired in March 2024, until Hidco grants clearance.
Hospital authorities have rejected the demand as “unjustified” and accused Hidco of acting illegally. “We offered Rs 477,000 per cottah, but Hidco demanded an additional Rs 100 cr,” hospital head Pradip Kumar Ghosh told a Bengali daily, blaming the agency for delays. Officials said the hospital, built on over 4.5 acres, has also not obtained an occupancy certificate or a fire licence. Despite this, outpatient services, diagnostic tests, and patient admissions are continuing, according to a recent visit by reporters. Former doctors at the facility have alleged discrepancies in bed numbers reported to different agencies and the absence of safety clearances. An NKDA official said no new trade licence will be issued without Hidco’s approval. A senior Hidco official said the agency is acting to ensure the hospital complies with regulations. The hospital’s promoters claim they invested ₹8 billion two years ago but have been unable to start full academic operations, leaving enrolled students without classes. They also allege Hidco has threatened to shut the facility if the dues are not paid.