Ahmedabad – In a major revelation, a five-member probe panel formed by the Ahmedabad Municipal Corporation (AMC) has found that 15 doctors from the city-run VS General Hospital allegedly diverted a total of ₹1.87 crore—meant for human clinical trials—into their personal bank accounts since 2021. The panel’s final report confirms extensive financial misconduct in at least 65 clinical trials conducted at the hospital.
Among those accused are a former Medical Superintendent, an Associate Professor, and several other doctors. Chargesheets have been issued to three individuals, and their cases will be heard by a designated AMC officer in the next few months.
Funds Bypassed Hospital Accounts
The probe revealed that instead of depositing trial funds into the hospital’s official account—as mandated—all 15 doctors received payments directly from pharmaceutical companies and research organisations. While the hospital account received only ₹10.63 lakh, individual doctors pocketed amounts ranging from ₹20,000 to ₹91.83 lakh.
“A total of ₹1,87,31,000 was found deposited in personal bank accounts. This bypassed the hospital’s account and violated all standard operating procedures,” said Manish Trivedi, Director of AMC Medical Education Trust and head of the probe panel.
Dismissals, Suspensions, and Ongoing Investigations
Following a preliminary report in April, eight contractual doctors were dismissed, and one faculty member suspended. Five other doctors had left the institution before the probe began. All 15 implicated doctors have now recorded their statements before the committee.
The report also implicated nearly 50 pharmaceutical companies and eight Site Management Organisations (SMOs) for participating in or facilitating the unauthorised trials.
DCGI Bars VS Hospital from Conducting Clinical Trials
The Drugs Controller General of India (DCGI), after reviewing the AMC’s findings, has barred VS Hospital from conducting further clinical trials. The DCGI also confirmed that 58 of the trials were conducted without proper approvals or ethical oversight, violating guidelines under the Clinical Trials Registry of India (CTRI) and the Maternity Benefit Act.
SMOs Reveal Financial Trail
SMOs—who coordinate between pharma firms and trial sites—provided crucial bank records and Unique Transaction Reference (UTR) codes that helped the committee trace the misappropriated funds. According to Trivedi, the SMOs also confirmed the role of doctors in receiving trial money directly.
Hospital Administration to Demand Recovery
The current Medical Superintendent is now tasked with recovering the misappropriated funds. Notices will be issued to all 15 doctors. If they fail to repay, AMC may initiate legal recovery proceedings.
An AMC official stated:
“We’ve also received feedback from DCGI confirming financial irregularities. A comprehensive inquiry is underway to determine accountability and impose necessary penalties.”
This scandal raises serious concerns about the oversight of clinical research at government hospitals and underscores the urgent need for transparency, ethical review mechanisms, and strict financial compliance in medical trials.
