Shalby Limited Inks Amended Agreement for Santacruz Project

On November 22, 2023, Shalby Limited took a significant step in advancing its Santacruz project by signing an Amendment Agreement to the Operation and Management Agreement with The Santacruz Residents Association and Smt. Bhikhubai Chandulal Jalundwala General Hospital (BCJ), collectively referred to as the "Trust." This strategic move is aimed at facilitating the execution of the New Hospital Building project in Santacruz, Mumbai. The Trust has promptly submitted an application to the Charity Commissioner for approval, a crucial step for the project's realization.

The forthcoming project involves the construction of a cutting-edge, 175-bed hospital in Santacruz, Mumbai, equipped with state-of-the-art facilities and technology. This initiative reflects Shalby Limited's commitment to providing high-quality multi-specialty services to a broader demographic in the city.

Key amendments outlined in the agreement include the provision of an Interest-Free Security Deposit of Rs. 37.50 crore by Shalby Limited to the Trust. Of this amount, Rs. 29.65 crore has already been furnished, with the recovery scheduled over a 30-year period on a yearly basis. Additionally, the Trust will make the necessary application to the Charity Commissioner, Mumbai, marking a pivotal step in gaining the required approvals for the project.

The construction of the new hospital building is contingent upon receiving approval from the Hon'ble Charity Commissioner, Mumbai. Shalby Limited will not only oversee the construction but also manage the newly constructed hospital facilities for a duration of 30 years. In the event of non-receipt of approval from the Charity Commissioner, Mumbai, the Trust commits to refunding the security deposit along with 9% interest within 12 months.

Various critical terms of the agreement address charitable obligations, the Commercial Operation Date, licenses and approvals, responsibilities of both the Trust and Shalby Limited, as well as the treatment of existing and future liabilities.

Upon obtaining the necessary approval from the Hon'ble Charity Commissioner, Mumbai, Shalby Limited anticipates operationalizing the new 175-bed hospital within approximately 2 to 3 years. This development marks a significant stride in Shalby Limited's commitment to expanding its healthcare infrastructure and providing enhanced medical services to the community.

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