Trust managing Lilavati Hospital says Rs 1,500crore misappropriated by ex-trustees; FIRs filed

Lilavati Hospital

The Lilavati Kirtilal Mehta Medical Trust, which runs Mumbai's Lilavati Hospital, reported that over Rs 1,500 crore was misused by former trustees and others linked to the trust. They have filed complaints with the Enforcement Directorate and the Bandra Police Station about this issue, reported PTI. The trust also claims that black magic rituals were performed on the hospital grounds by these former trustees.

The misuse of funds was discovered during a financial audit of the hospital. This has affected the trust's operations and the healthcare services offered by the hospital in Bandra.

“Following our complaints, three FIRs were filed against the former trustees and others. A fourth case is pending in court regarding the black magic practices,” said Prashant Mehta, a trustee, told PTI.

The Bandra Magistrate Court has ordered an investigation into these individuals. Mehta emphasized their commitment to maintaining the trust's integrity and ensuring that funds are used to benefit patients.

He added that the financial misconduct revealed in the audit threatens the hospital's mission. LKMMT plans to hold everyone involved in these actions accountable and has asked the Enforcement Directorate to investigate these financial crimes under the Prevention of Money Laundering Act.

After a long legal struggle, the current trustees found significant irregularities in hospital management and decided to conduct an audit. Two firms, Chetan Dalal Investigation and Management Services and ADB and Associates, worked as forensic auditors.

The audits uncovered serious issues, including manipulation and misuse of funds by the former trustees, many of whom are NRIs living in Dubai and Belgium. “The auditors reported that over Rs 1,500 crore has been misappropriated by these trustees,” Mehta stated.

Based on these findings, the current trustees submitted three complaints to the Bandra Police about forgery and misuse of funds. After these FIRs were lodged, the Economic Offences Wing (EOW) took over the investigation.

One FIR also alleges that Rs 1,200 crore was misused in illegal dealings with third-party distributors for hospital supplies. Additionally, Mehta mentioned another case in Gujarat related to the theft of valuables from the hospital.

Regarding the black magic rituals, he said, “We found more than seven urns containing human hair and skulls.” The EOW has started looking into a separate cheating case involving Rs 85 crore against three former trustees.

This case was registered at the Bandra Police Station after the LKMMT filed a complaint. The complaint states that between 2002 and 2023, certain individuals took control of the trust using fake documents. They allegedly used Rs 85 crore for legal fees for personal matters, pretending it was for medical equipment and personal expenses.

A case of cheating and criminal breach of trust was registered based on this complaint.