The Lilavati Kirtilal Mehta Medical Trust, which manages Mumbai’s renowned Lilavati Hospital, has accused its former trustees of siphoning off a staggering Rs 1,200 crore, with the total misappropriation allegedly amounting to Rs 2,100 crore over the years. While the first FIR in the case was lodged in July 2024, the accusations trace back to 2001. The Trust has taken legal action in an effort to recover the lost funds.
On March 7, the Trust escalated the matter by filing a fresh complaint with the Bandra police, as well as a formal submission to the Enforcement Directorate. It has asserted that the financial fraud has directly impacted the hospital’s ability to serve thousands of patients daily.
Parambir Singh, former Mumbai Police Commissioner and now the Executive Director of Lilavati Hospital, revealed to reporters that the trustees allegedly involved in the scam are currently based in Belgium and Dubai.
Allegations of Occult Practices and Financial Fraud
In a shocking turn, claims of occult practices have also surfaced in connection with the former trustees. Singh disclosed that eight urns containing human remains—including bones and hair—were discovered beneath the flooring of the trustee’s office. These items have been sealed and handed over to the police as evidence.
Although legal proceedings have been ongoing for years, the extent of financial irregularities was only confirmed following a forensic audit initiated by a new team of trustees. The audit exposed massive financial fraud, unauthorized transactions, fraudulent investments, and illicit financial dealings by the previous management.
Hospital Calls for Swift Action
Describing the case as “the biggest scam ever in the medical sector,” sources indicate that no other fraud of such scale has been uncovered in healthcare institutions.
Additionally, the investigation has extended to another case involving theft at Lilavati Hospital’s Gujarat facility. Meanwhile, the Income Tax Department has reportedly filed claims exceeding Rs 500 crore in the High Court, citing fraudulent expenditures by the former trustees.
Condemning the financial misconduct, the Trust has vowed to ensure those responsible face justice. “The gross misconduct and financial misappropriation uncovered during the forensic audit is not just a betrayal of the trust placed in the alleged and fraudulent former trustees, but a direct threat to the very mission of our hospital. We will ensure that every individual involved in these illegal activities is held accountable, and we request the Enforcement Directorate to take swift and decisive action in investigating these financial crimes under the provisions of the PMLA,” stated Permanent Resident Trustee Prashant Mehta.
As the legal battle intensifies, all eyes remain on the authorities to take decisive action in what could be one of the most significant financial scandals in the medical sector.
