Up to 60 people gathered and used a bulldozer to tear down a boundary wall of the 44-year-old Pushpa Mission Hospital in Ujjain, Asian news site Ucanews reported.
The hospital director, Fr Anthony Pulickamandapam said: "Our staff, including Catholic nuns, who attempted to resist the advance were manhandled and forced to flee for safety.
"They also destroyed the backup power generator and disconnected the water supply, putting the lives of nearly 200 patients - including 12 in the intensive care unit - in serious danger."
He said the hospital faced trouble since January after Gagan Singh, the personal assistant of a local legislator, staked a claim for the hospital grounds.
However, Fr Pulickamandapam insists the land in front of the hospital was gifted by the local civic body for use as a parking area and to maintain its vegetation.
He said tensions peaked just two days after church authorities sought an order to be able to keep functioning as a hospital while the police investigation and hearing went on.
Bishop Sebastian Vadakel of Ujjain told Ucanews that the local police station and other senior officials refused to respond to calls for help.
"Even our staff nurses, who approached the women's police station to lodge a complaint, were turned away," he said.
A Catholic delegation led by Bishop Vadakel has since met Governor Anandiben Patel, who was visiting the town, to call for the protection for Christians and their properties.
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