The trustees of Lilavati Kirtilal Mehta Medical Trust (LKMM) have alleged that the former trustees orchestrated the biggest scam in the medical field in India, allegedly embezzling over Rs.2,000 crore. The trust has filed its third FIR against them, following two previous FIRs. However, the trustees have approached the Enforcement Directorate (ED), urging it to take immediate cognizance of the matter under the Prevention of Money Laundering Act (PMLA), stating that the funds involved are the proceeds of serious financial crimes.
Acting on the directions of the Metropolitan Magistrate Court, Bandra, the Bandra police on March 6 registered a case against 14 former trustees of LKMM and three private companies for alleged financial misappropriation through cheating and forgery. Present trustees claim that funds were siphoned off through illegal dealings with third-party distributors involved in hospital procurement.
The complainant Prashant Mehta, 53, a resident of Gamdevi and a permanent trustee of the Lilavati Kirtilal Mehta Medical Trust (LKMM), has written to the Enforcement Directorate (ED), urging an investigation into the accused.
LKMM trustees held a press conference at Lilavati Hospital on Tuesday and alleged massive financial irregularities, severely impacting the trust’s operations and the hospital’s ability to provide healthcare services to hundreds of patients daily.
“This is a scam worth more than Rs.2,000 crore—the biggest scam in the medical sector. The accused, who are Non-Resident Indians (NRIs), currently reside in Dubai and Belgium,” Mehta alleged at the press meet.
Mehta further stated, “After a prolonged legal battle, we gained control of the trust and uncovered large-scale financial irregularities. A forensic audit was conducted by M/s. Chetan Dalal Investigation and Management Services Pvt Ltd (CDIMS) and M/s. ADB & Associates, revealing large-scale fund siphoning, manipulation, and misappropriation.”
Former Mumbai police commissioner Param Bir Singh, who is currently executive director at LKMM, stated, “The former trustees siphoned off huge amounts of money from the trust’s fund. The scam is worth hundreds of crores. Mehta has written to the ED, urging them to take cognizance and investigate the case. These are predicate offences, and there was also money laundering and huge properties amassed abroad using proceeds of the crime.”
Mehta had earlier filed two complaints with Bandra police. First FIR (July 7, 2024) alleged forgery and misappropriation of Rs.11.52 crore, invested in Mayfair Realtors Pvt Ltd and Vesta India Ltd, with funds later siphoned off. Second FIR (December 2024) involved alleged financial irregularities amounting to Rs.44 crore, allegedly misappropriated as legal consultancy fees. This case was transferred to the Economic Offences Wing (EOW) and is under investigation.
New FIR Names 14 former trustees of LKMM and 3 private entities. The latest FIR alleges that former trustees embezzled Rs.1,250 crore under the guise of medical equipment procurement during a period of the past 20 years.
Those named in the complaint include Chetan Mehta, Niket Mehta, Rashmi Mehta, Bhavin Mehta, Susheela Mehta, Ayushman Mehta, Nimesh Sheth, Saurav Pandey, Mahadevan Narayanmoni, Kalpna Shrinivasan, Isha Sadana, Dheeraj Jain, Shankar Badam, and Mayank Kapoor, Akna Medical Private Limited, Shreeji Distributors Pharma Private Limited, and Vardhman Health Specialities Private Limited. Chetan Mehta did not respond to a message from the FPJ, while hospital spokesperson declined share the numbers of the other persons named in the FIR.
The accused have been charged under multiple sections of the Indian Penal Code (IPC), including Section 403 (dishonest misappropriation of property Section), 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant, banker, merchant, or agent), 420 (cheating and dishonesty), 465, 467, 471, 474 (forgery and use of forged documents) and 34 (common intention).
Additionally, another case is under investigation in Gujarat regarding the theft of valuables from Lilavati Hospital’s Gujarat facility. The Income Tax Department has also filed claims exceeding Rs.500 crore in the High Court, citing fraudulent expenses attributed to the former trustees.
Present trustees alleges erstwhile trustees illegal activities
Looting the Trust by money laundering through Gembel, Approx. Rs. 170 Crores
Illegal monies paid to Lawyers/Consultants Personal LitigationApprox. Rs. 184 Crores
Looting the trust through illegal alternative private supply purchasing entitiesMore than Rs. 1200 Crores
Niket Mehta’s illegal occupation of 12th Floor of Lilavati Hospital as his personal residence – Rent along with interest due More than Rs. 17 Crores
Illegal Transfer of Money to Vesta/MayfairApprox. Rs. 17 Crores
Illegal Transfer of Money Golden Sea Shells.Approx. Rs. 14 Crores
Illegal Transfer of Money to M/s. Sajj DevelopersApprox. Rs. 5 Crore
Income Tax liabilities and PenaltiesApprox. Rs. 500 CroresConservative Total LossMore than Approx. Rs. 2100 Crores
