Mumbai’s Lilavati Hospital Trust has filed a fresh FIR against 17 individuals, including seven former trustees, equipment suppliers, and vendors, for allegedly misappropriating Rs 1,250 crore over the past two decades. The accused are primarily based in Dubai and Belgium.
At a press conference on Tuesday, Param Bir Singh, former Mumbai Police Commissioner and now Executive Director of Lilavati Hospital, revealed that a forensic audit had uncovered major financial irregularities committed by the hospital’s previous management. He stated that the former trustees engaged in large-scale corruption and financial misconduct while they controlled the trust.
The current board of trustees, after assuming charge, ordered a forensic investigation that exposed financial discrepancies amounting to nearly Rs 1,250 crore. Following this discovery, Prashant Kishore Mehta, a permanent trustee of Lilavati Hospital, attempted to register an FIR with the Bandra police. However, when the police refused, Mehta approached the Bandra court, which directed the police station to register a case under Section 175(3) of the Bhartiya Nagrik Suraksha Sanhita (BNSS). The Bandra police then lodged the FIR, and the case is expected to be transferred to the Economic Offences Wing (EOW) soon.
Allegations of Financial Misconduct
According to the FIR, the accused former trustees allegedly conspired with vendors and suppliers to commit financial fraud through overpriced purchases and misappropriation of hospital funds. The fraudulent activities reportedly involved the purchase of:
- Medical equipment
- Furniture and fixtures
- Computers and office supplies
- Legal and medical books
- Electrical equipment
- Vehicles and ambulances
- Surgical consumables
- Pharmaceuticals and chemist supplies
- Land and building acquisitions
The misappropriation of funds was allegedly done through inflated invoices, fake transactions, and unauthorized expenditures.
Legal Charges and Investigation
The police have charged all 17 accused under multiple sections of the Indian Penal Code (IPC), including:
- Section 403 (Dishonest misappropriation of property)
- Section 406 (Criminal breach of trust)
- Section 409 (Criminal breach of trust by a public servant or banker)
- Section 420 (Cheating and dishonestly inducing delivery of property)
- Section 465 (Forgery)
- Section 467 (Forgery of valuable security, will, etc.)
- Section 471 (Using forged documents as genuine)
- Section 474 (Possession of forged documents with intent to use as genuine)
- Section 34 (Acts done by several persons in furtherance of common intention)
Previous FIRs Against Former Trustees
This is the third FIR filed against the ex-trustees of Lilavati Hospital:
- First FIR (July 2024): Allegations of cheating and forgery involving Rs 12 crore.
- Second FIR (December 2024): Accusations of siphoning Rs 44 crore under the pretense of legal fees.
- Third FIR (March 2025): A massive Rs 1,250-crore embezzlement case, uncovering financial fraud committed over two decades.
Request for Enforcement Directorate (ED) Investigation
In light of the massive financial irregularities, Param Bir Singh stated that Lilavati Hospital has written to the Enforcement Directorate (ED), urging it to investigate potential money laundering linked to the embezzled funds.
Singh alleged that the accused trustees amassed significant overseas properties using proceeds from the fraud, making it necessary for the ED to step in. The case is currently under the scrutiny of the Economic Offences Wing (EOW), and further investigations are expected to reveal additional details.
This case marks one of the biggest financial scams in India’s healthcare sector, and authorities are now intensifying their probe into the hospital’s previous management and financial dealings.
