The hospital had borrowed Rs 5.3 crore from a consortium of ICICI and IDBI between 1990-92 for its modernisation programme. It had, however, faltered in the repayment of the principal and the interest of Rs 14.5 crores due to the two financial institutions (FIs).

The FIs had filed a suit in the Bombay High Court for recovery and secured the appointment of a court receiver for the hospital property to ensure continuity in the functioning of the hospital. A press release said that the court permitted the hospital trustees to manage the day to day affairs on payment of a royalty of Rs 1 lakh per month.

Significantly, the Apollo hospital, the Ramachandra Medical College and Research Institute, the Shankara Netralaya and a few NRIswere serious contenders to take over the hospital. However, since the trustees were reluctant to handover the hospital to any private institution, a senior sage of Kanchi, Jayendra Saraswati Swamigal, was approached.

Subsequently consent terms were drawn up, with regard to the suit filed in the Bombay High Court and the Mutt arranged to pay Rs 5.3 crore towards the principal loan amount and the interest payment would settled before the year end. V Shankar, an educationist has been appointed as chairman of the hospital while other trustees include AC Muthiah and K Badrinarayan.

The Childs Trust Hospital has during the last three years treated over 2,20,000 children and has a well-equipped neo-natalogy department, an ICU and a radiology and imaging services unit.