- विज्ञापन -
The Lilavati Kirtilal Mehta Medical Trust (LKMM), which operates Mumbai’s Lilavati Hospital, has filed a complaint with the Enforcement Directorate (ED) against its former trustees, accusing them of embezzling over Rs 1,200 crore. The complaint alleges that the funds were siphoned off through fraudulent investments, kickbacks, and illegal offshore transactions.
The fraud came to light after a forensic audit revealed “large-scale irregularities, manipulation, and fund misappropriation” by the previous administration. The current trustees took control of the trust after a lengthy legal battle, and the audit was conducted by Chetan Dalal Investigation and Management Services (CDIMS) and ADB & Associates.
The audit uncovered illegal investments of Rs 11.52 crore in companies like Mayfair Realtors and Vesta India, made without proper accounting. It also found fraudulent legal fee payments of Rs 44 crore, misrepresented as legitimate expenses, and procurement-related financial mismanagement exceeding Rs 1,200 crore, including alleged kickbacks and illicit dealings with third-party distributors.
Additionally, an ongoing investigation in Gujarat concerns the theft of valuables from the Lilavati Hospital’s Gujarat facility. The Income Tax Department has also filed a Rs 500 crore tax claim in the High Court, challenging disallowed expenses by the former trustees. Based on these findings, several first information reports (FIRs) have been filed against the accused, initially with Bandra Police Station and later transferred to the Economic Offences Wing (EOW).
Given the magnitude of the alleged fraud, which constitutes a predicate offence under the Prevention of Money Laundering Act (PMLA), LKMM has called for swift action from the ED.
The financial misconduct has reportedly affected Lilavati Hospital, a multi-specialty institution serving thousands of patients daily. The trust claims that misused funds meant for healthcare and medical facilities have compromised patient care and hospital operations.
“The financial fraud has drained resources meant for charitable purposes, diverting donations intended for healthcare and eroding public trust,” said Prashant Mehta, permanent resident trustee of LKMM. “This betrayal of public trust threatens our mission to provide world-class healthcare. We urge authorities to act quickly so that justice is served, and our institution can continue its work without financial uncertainty.”
