Karnataka govt scraps lease with Imperial Cancer Hospital as prime land sub-let to corporate hospital

Bengaluru: The state government has cancelled a 1991 lease agreement with Imperial Cancer Hospital and Research Centre Ltd pertaining to the five-acre property on Bannerghatta Road.

The decision, which brings closure to a matter that has seen prolonged litigation, was taken on the grounds that the private entity sub-leased the prime land to a super speciality hospital violating lease conditions. 

The land – part of survey number 154/11 of Bilekahalli village – was leased to Imperial Cancer Hospital and Research Centre Ltd for establishing “a cancer cure and research centre”. However, the government noted that the land has been used by a private entity to run a super-speciality hospital. The property — situated opposite IIMB — is valued at hundreds crores of rupees.

This is not the first time the government has attempted to cancel the 1991 lease.

In March 2015, the Revenue Department initiated a similar move under the Karnataka Land Allotment Rules, 1969. It also ordered the lessee to transfer the existing building to Kidwai Memorial Institute of Oncology in line with the original purpose of allotment.

However, Imperial Hospital and Research Centre challenged the order by approaching the high court with a writ petition (17797/2018). In October 2021, the court put brakes on the government order to cancel the lease and ruled that the government must first give the petitioner an opportunity before passing the order.

Subsequently, in March 2022, the department served a notice on the chief executive officer (CEO) of Imperial Hospital and Research Centre seeking a reply in 15 days. The lessee wrote back, stating that it had not violated any of the lease conditions. It also denied all other charges.

Not convinced with the response, the Revenue Department concluded that Imperial Cancer Hospital and Research Centre Ltd had indeed violated the lease conditions by noting that the lessee has sub-leased the land to Apollo Hospital Enterprises Ltd.

In the latest order in February 2026, the department also refused to accept the justifications provided by the private firm and decided to revoke the lease. A 2017 report of the Comptroller and Auditor General of India on Grant, Lease, Eviction of Encroachment and Regularisation of Unauthorised Occupation of Government Lands had exposed that the lessee had sub-let the land — meant for cancer research institute — to another hospital. “The land was not resumed back despite a 2015 government order,” it noted.

A spokesperson for Apollo Hospitals declined to comment, stating that the subject is sub judice.