Trust Accuses Former Trustees of Large-Scale Financial Fraud
Mumbai: The Lilavati Kirtilal Mehta Medical Trust, which manages Mumbai’s prestigious Lilavati Hospital, has accused its former trustees of embezzling ₹1,200 crore. The total misappropriated amount over the years is alleged to be around ₹2,100 crore.
The first FIR was registered in July 2024, but reports of fund siphoning date back to 2001. The Trust has taken legal action to recover the funds and on March 7, it filed a fresh complaint with Bandra police and a formal request with the Enforcement Directorate (ED), alleging that the financial fraud has affected the hospital’s ability to provide services to thousands of patients daily.
Trustees Allegedly Fled to Belgium and Dubai
Parambir Singh, former Mumbai Police Commissioner and now Executive Director of Lilavati Hospital, told reporters that the former trustees allegedly involved are currently in Belgium and Dubai.
In a bizarre twist, allegations of witchcraft have also surfaced. Singh claimed that eight urns containing human remains—bones and hair—were found beneath the flooring of the trustee’s office. These items have been sealed and sent to the police as evidence.
Forensic Audit Uncovers Massive Scam
A forensic audit, conducted after a new team of trustees took charge, exposed large-scale fund siphoning, illegal financial transactions, fraudulent investments, and kickbacks by the former trustees.
A source described the case as “the biggest scam ever in the medical sector.”
Additional Cases Under Investigation
- A fresh FIR filed on March 7 has provided new details on the financial fraud.
- Another investigation is underway regarding the theft of valuables from Lilavati Hospital’s Gujarat facility.
- The Income Tax Department has filed claims worth ₹500 crore in the High Court, citing fraudulent expenses by the former trustees.
Trust Calls for Swift Action
Permanent Resident Trustee Prashant Mehta stated that the misconduct and financial fraud uncovered in the forensic audit represent a betrayal of trust and a threat to the hospital’s mission.
“We will ensure that every individual involved is held accountable, and we request the Enforcement Directorate to take swift and decisive action under the Prevention of Money Laundering Act (PMLA),” Mehta said in a statement.
