Financial Scandal at Mumbai’s Lilavati Hospital: Rs 1,200 Crore Allegedly Siphoned

Mumbai, 12th March 2025: The Lilavati Kirtilal Mehta Medical Trust, which oversees Mumbai’s renowned Lilavati Hospital, has accused its former trustees of misappropriating approximately ₹1,200 crore. The Trust further claims that financial irregularities over the years amount to a staggering ₹2,100 crore. While the initial FIR was lodged in July 2024, the allegations of fund mismanagement trace back to 2001. The hospital has also taken legal action to reclaim the lost funds.

On March 7, the Trust submitted a fresh complaint to the Bandra police and formally approached the Enforcement Directorate, asserting that the financial mismanagement has negatively impacted the hospital’s ability to serve thousands of patients daily.

Former Mumbai Police Commissioner Parambir Singh, now serving as Lilavati Hospital’s Executive Director, informed the media that the trustees accused of financial misconduct are currently in Belgium and Dubai.

In a shocking revelation, there are also allegations of occult practices involving the former trustees. Singh stated that investigators discovered eight urns containing human bones and hair beneath the office flooring of one of the trustees. These findings were sealed and handed over to the police for further examination.

Fresh Investigations Following Forensic Audit

Although legal proceedings have been ongoing for years, a forensic audit conducted by the Trust’s new management confirmed large-scale financial fraud, misuse of funds, and irregularities linked to the former trustees.

“This is one of the most significant financial frauds in the medical sector,” a source claimed, pointing to the scale of fund siphoning, unauthorized financial dealings, dubious investments, and kickbacks.

The latest FIR, filed on March 7, adds further insights into the expanding investigation. Another probe is underway regarding the theft of valuables from Lilavati Hospital’s Gujarat facility. Additionally, the hospital disclosed that the Income Tax Department has filed claims exceeding ₹500 crore in the High Court against the former trustees for fraudulent expenses.

Official Statement from the Trust

A statement from Permanent Resident Trustee Prashant Mehta emphasized the severity of the financial misconduct exposed by the forensic audit.

“The gross financial mismanagement uncovered is not only a betrayal of trust by the former trustees but also a direct threat to the hospital’s core mission. We are committed to ensuring that every individual involved in these illegal acts is held accountable. We urge the Enforcement Directorate to take swift action under the provisions of the Prevention of Money Laundering Act (PMLA),” Mehta stated.