The land on which Rajawadi Hospital sits belonged to the erstwhile Maharaja King Gaikwad of Baroda, which had been donated to him by his family members. The area was then referred to as Rajawadi. The land was later acquired by the Bombay Municipal Corporation in 1950 and initial planning of Rajawadi Hospital took place. In 1956, with the generous donation by the Gandhi and Vora family to the tune of Rs. 1,01,101/- and with the help of the local Municipal Corporation, a ground floor structure dispensary was constructed, which gave necessary health care to the poor and the needy of the area. In 1957, due to the merger of the extended eastern suburbs up to Mulund into the Municipal Corporation limits, the dispensary was expanded by joining the S.V. Khimji Maternity Hospital at Rajawadi hospital into a 20-bed hospital. Later the hospital was expanded into a 50-bed hospital with facilities such which included an Operating Theatre, X-Ray Department and Pathology Departments. A plaque at the Operating Theatre recognises the donations from Seth V C Gandhi.