Lilavati Hospital trust flags ₹1,500 crore fraud: FIR filed against ex-trustees, black magic alleged

Mumbai: The charitable trust managing Mumbai’s Lilavati Hospital has accused its former trustees of misappropriating over ₹1,500 crore. The Lilavati Kirtilal Mehta Medical Trust (LKMMT) has lodged multiple complaints with the Enforcement Directorate (ED) and Mumbai Police, leading to FIRs against those involved.

The complaints stem from a forensic audit revealing large-scale financial irregularities, allegedly committed by previous trustees and associated individuals. The trust has also accused them of performing black magic rituals within the hospital premises.

"We filed complaints which translated into FIRs due to the orders of the Bandra Magistrate Court. More than three FIRs have been filed against the former trustees and other related individuals. A fourth proceeding against these individuals is now pending before the Learned Magistrate which is based on our complaint filed in the Bandra Police Station for black magic and occult practices," LKMMT Permanent Resident Trustee Prashant Mehta told reporters.

The Bandra Magistrate Court has ordered an inquiry against these very individuals, he added.

"We are committed to upholding the integrity of the Lilavati Kirtilal Mehta Medical Trust and ensuring that funds meant for healthcare services are used solely for the benefit of patients who rely on us daily. The gross misconduct and financial misappropriation uncovered during forensic audit is not just a betrayal of the trust placed in the alleged and fraudulent former trustees, but a direct threat to the very mission of our hospital," Mehta maintained.

He said LKMMT will ensure that every individual involved in these illegal activities is held accountable.

"We request the Enforcement Directorate to take swift and decisive action in investigating these financial crimes under the provisions of the PMLA (Prevention of Money Laundering Act)," he stated.

After taking charge following a prolonged legal dispute, the current trustees identified extensive irregularities in the hospital’s financial affairs. Forensic audits conducted by Chetan Dalal Investigation and Management Services (CDIMS) and ADB and Associates exposed large-scale fund siphoning by former trustees, many of whom are reportedly non-resident Indians based in Dubai and Belgium.

The auditors found large-scale irregularities, manipulation, siphoning of funds in the affairs of LKMMT by its erstwhile trustees, Mehta claimed.

"We undertook audits and the forensic auditors have come up with more than five reports, which clearly states that more than ₹1,500 crore has been siphoned and misappropriated by this illegal group of trustees. This money has been siphoned off by former trustees most of whom are NRIs and residents of Dubai and Belgium," he alleged.

On the basis of the findings of the forensic audit, the current trustee filed three complaints at the Bandra Police Station alleging forgery and misappropriation of funds. After registration of FIRs, the case was transferred to the Economic Offences Wing (EOW) which is carrying out an investigation.

Further, the third FIR at the Bandra Police Station alleged that ₹1,200 crore was misappropriated by indulging into illegalities with third-party distributors in respect of procurements for the hospital.

In addition to these FIRs, Mehta said another case is under investigation in Gujarat in respect to theft of valuables from Lilavati Hospital's facility in the adjoining state.

Speaking about black magic rituals performed in the hospital premises, he said "We have discovered more than seven urns with human hair and skulls."

Meanwhile, the Mumbai police's EOW has initiated a probe into an alleged cheating case of ₹85 crore registered against three former trustees of the hospital, officials said on Tuesday.

The case, registered at the Bandra Police Station on December 30 last year on a complaint of the LKMMT, had been transferred to the EOW on orders of the magistrate's court, an official said.

The complaint was filed by one of the current trustees of the hospital after he found that between 2002 and 2023, the accused 'purported trustees' seized control of the trust by allegedly using fake documents, he said.

They unlawfully utilized ₹85 crore for advocate fees for personal cases under the pretext of purchasing medical equipment and for personal expenses, the official said.

Based on the complaint, a case related to cheating and criminal breach of trust was registered at the Bandra Police Station, he said.

PTI