Charity Commission Confirms Removal; Recovery Suit Filed in Bombay High Court
Mumbai: In a major development, the Lilavati Kirtilal Mehta Medical Trust (LKMMT), which manages Lilavati Hospital and Research Centre, has terminated permanent trustee Rajesh Mehta following allegations of financial fraud, coercion and attempts to take control of the institution.
Trustee Rajiv Mehta stated that the majority of the board passed a Circular Resolution dated February 16, 2026, for Rajesh Mehta’s removal. He described the move as necessary due to what he termed “an illegal act done with Param Bir Singh.” The Charity Commission reportedly confirmed the termination later that afternoon.
Charity Commission Observations and Internal Findings
According to statements made to the media, the Charity Commission observed that Rajesh Mehta was involved in coercion, intimidation and interference in the Trust’s functioning. The termination letter described his conduct as “extremely dangerous and unacceptable,” stating that he was incapable of acting in the best interests of the Trust.
The controversy intensified after a preliminary financial review conducted by the hospital’s Chief Financial Officer, Satish M. Shroff, who joined in January 2026. The review allegedly flagged serious financial irregularities involving large advance payments to vendors without corresponding delivery of goods.
Alleged ₹34 Crore Advance Payments Without Supplies
The CFO’s report indicated that advances amounting to nearly ₹34 crore were paid between April and December 2025 for pharmacy supplies, surgical consumables and infrastructure projects. However, the materials were allegedly never delivered.
Four companies — Pharma Chemist and Distribution Pvt Ltd, Aetronomic Healthcare Pvt Ltd, Wellness Orthocare LLP and Medipharma — reportedly received over ₹30.5 crore collectively without supplying the contracted goods. The findings were formally communicated to the Trust’s leadership on February 14, 2026.
Legal Battle and Counter Allegations
Following these findings, the Trust prepared a recovery suit before the Bombay High Court against Rajesh Mehta, former Mumbai Police Commissioner Param Bir Singh, and their associates, alleging collusion and financial fraud.
The dispute also involves allegations that minutes of a July 2024 board meeting were fabricated in an attempt to take control of the Trust. Rajiv Mehta and Prashant Mehta have accused Singh and Rajesh Mehta of criminal conspiracy, including falsifying records and diverting over ₹100 crore in Trust funds. Investigations and legal proceedings are currently underway as the internal conflict within the Trust continues to unfold.
