Mumbai's prestigious Lilavati Hospital is currently at the center of an enormous embezzlement scandal involving its former trustees. The allegations of fraud, financial mismanagement, and even black magic rituals have rocked one of the most well-known healthcare institutions in India. With claims of approximately Rs 1,200 crore siphoned off from the hospital's trust over two decades, the case has raised serious concerns about the integrity of the management and its long-term impact on healthcare services provided to thousands of patients.
Overview of the Scandal
The Lilavati Kirtilal Mehta Medical Trust (LKMMT), which runs the hospital, has alleged that a significant amount of funds—around Rs 1,200 crore—was misappropriated by its former trustees. This embezzlement, stretching back to 2001, only came to light after a forensic audit was initiated by the current board of trustees. According to the Trust, the total amount misappropriated could be as high as Rs 2,100 crore when accounting for additional financial irregularities.
The case has unfolded in multiple FIRs (First Information Reports) over the years, with the most recent one filed on March 7, 2025, involving 17 individuals. This group includes former trustees, vendors, and suppliers. The scandal has severely affected the hospital's finances, impacting its ability to provide critical healthcare services.
Financial Fraud and Mismanagement
The forensic audit conducted by the current trustees revealed shocking details of large-scale financial fraud. The irregularities involved fraudulent investments, illegal financial transactions, and kickbacks, along with a variety of other methods to siphon funds. These activities occurred over several years, involving numerous individuals and entities connected to the hospital.
Key Findings of the Forensic Audit
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Siphoning of Funds: Large sums of money were diverted through fake transactions, misappropriated purchases, and false invoices.
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Fraudulent Investments: Investments made on behalf of the hospital were allegedly routed to personal accounts or other unrelated businesses.
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Kickbacks and Commissions: Certain trustees and associates are said to have received illegal kickbacks in exchange for facilitating these fraudulent activities.
Former Mumbai Police Commissioner, Parambir Singh, who is now serving as the hospital's Executive Director, explained that the hospital's construction was completed in 1997, but by 2002, the trusteeship had shifted into the hands of relatives of the late trustee Kishor Mehta. These individuals are alleged to have illegally taken control of the hospital's operations, leading to the financial malpractices that followed. #WATCH | Mumbai: Executive Director of Lilavati Hospital, Param Bir Singh, says, "The Leelavati hospital construction was completed in the year 1997 by our late trustee Kishor Mehta and his wife Charu Mehta. But in 2002 and onwards, some of their relatives, brothers and nephews… pic.twitter.com/MQ3WVfdltC— ANI (@ANI) March 11, 2025
Legal Action and Investigation
The Trust has taken legal action to recover the misappropriated funds and ensure that those responsible are held accountable. Despite initial setbacks, including the Bandra police's refusal to file a case, the current trustees persisted and approached the Bandra court. The court's intervention resulted in the registration of the third FIR in this ongoing investigation.
In addition to the cases filed in India, the Enforcement Directorate (ED) has been urged to investigate the potential for money laundering, as much of the misappropriated money has allegedly been funneled abroad, particularly to Dubai and Belgium, where the accused trustees are believed to be residing.
The investigations also include a separate case involving the theft of valuables from Lilavati Hospital’s Gujarat facility, adding another layer to the growing controversy.
Allegations of Black Magic and Witchcraft
Adding an eerie twist to the scandal, Parambir Singh and other hospital officials have claimed that black magic rituals were performed at the hospital premises, potentially in an attempt to exert control over the Trust. According to Singh, several urns filled with human remains, hair, rice, and other materials associated with black magic were found buried beneath the office floor of the hospital's trustees. These findings were sealed and sent to the police for further investigation.
This bizarre development has shocked many, especially considering the gravity of the financial crimes associated with the hospital’s management. Prashant Kishore Mehta, the current Permanent Trustee of the Lilavati Trust, expressed disbelief over the situation, highlighting the severity of the fraud and its negative impact on the hospital’s operations.
The Impact on Lilavati Hospital
The financial mismanagement has not only compromised the integrity of the Trust but has also undermined the hospital’s ability to deliver quality healthcare. Lilavati Hospital, known for its state-of-the-art facilities and critical care services, serves thousands of patients daily. The misappropriation of funds, according to the Trust, has strained the resources needed for the hospital’s smooth functioning.
Prashant Mehta emphasized that the money siphoned off through fraudulent means could have been used to build additional hospitals to serve the underprivileged and extend the reach of the hospital’s charitable services. Instead, it has led to a severe shortage of funds for the hospital's operations.
The Role of Parambir Singh, Ex-Commissioner of Mumbai Police and Current Lilavati Hospital's Executive Director
Parambir Singh, who now serves as the Executive Director of Lilavati Hospital, has a controversial background in law enforcement. Before his involvement in the hospital scandal, Singh was dismissed as Mumbai's Police Commissioner in 2021 following his involvement in high-profile cases, including the alleged extortion racket related to businessman Mukesh Ambani’s residence. Singh's investigation into the Lilavati Trust's financial mismanagement has drawn significant public attention, with many viewing his involvement as crucial to uncovering the full extent of the fraud.
The ongoing investigations into the embezzlement and fraud at Lilavati Hospital paint a grim picture of financial mismanagement, corruption, and even black magic rituals that allegedly took place within the institution. As the case progresses, the Trust is committed to holding the accused accountable, with the help of law enforcement and forensic auditors. The hospital’s future now hinges on the recovery of the stolen funds and the restoration of its financial integrity, so that it can continue serving the public as a beacon of hope for quality medical care.
As this case continues to unfold, it stands as a stark reminder of the potential for corruption even within trusted healthcare institutions, and the need for rigorous oversight to protect public and charitable funds.
With inputs from agencies
Image Source: Multiple agencies
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