The Lilavati Hospital trust in Mumbai has filed a massive embezzlement case exceeding Rs 1,250 crore against several former trustees, including Vijay Mehta — the brother of the hospital's founder Kishore Mehta — along with his relatives and close associates. This came to light after a forensic audit revealed extensive financial irregularities, including fraudulent records, misappropriated funds, and fabricated transactions.
The scandal traces back to 2002 when Kishore Mehta traveled abroad for medical treatment, leaving his brother Vijay Mehta temporarily in charge of the trust. During this time, Vijay allegedly forged documents and signatures to appoint his sons and nephews as trustees while orchestrating the removal of Kishore as a permanent trustee. This triggered a long and bitter legal battle, culminating in 2016 when Kishore successfully regained control.
After Kishore Mehta's death in 2024, his son Prashant Mehta stepped in as the permanent trustee. Determined to clean up the hospital’s financial operations, Prashant ordered a thorough forensic audit — which exposed widespread financial misconduct, including the siphoning of enormous sums through fake purchase orders and bogus records.
Three FIRs have been registered, detailing the shocking scale of the misappropriation. The first FIR covers the diversion of Rs 11.52 crore into unrelated companies — Mayfair Realtors and Vesta India — with no connection to healthcare services. The second FIR highlights Rs 44 crore paid under the pretext of legal fees, even though no legitimate legal proceedings took place. The third, and most staggering, FIR reveals the misappropriation of over Rs 1,200 crore through fictitious hospital supply orders, with the audit confirming that the supplies were never actually purchased or delivered.
Beyond this, the Income Tax Department has launched a parallel investigation into alleged tax evasion amounting to Rs 500 crore. Additionally, a separate theft case has emerged involving valuables and jewelry worth over Rs 59 crore, reportedly stolen from a secure vault in Gujarat linked to the trust’s assets.
In an unexpected and bizarre twist, a complaint has also been filed under the Maharashtra Anti-Black Magic Act. Several hospital employees came forward, claiming the former trustees engaged in black magic rituals aimed at causing harm to Prashant Mehta and his mother, Charu Mehta. Reports suggest these practices were intended to intimidate and weaken the family’s hold over the hospital.
The current trustees have now approached the Enforcement Directorate (ED) to escalate the investigation into the large-scale financial scam, ensuring all angles of the scandal — from embezzlement to potential money laundering — are thoroughly examined.
Meanwhile, authorities believe the key accused, including Vijay Mehta, may have fled the country to avoid arrest. Unconfirmed reports place them in the UAE and Belgium, prompting the trust to push for international intervention to bring the culprits back to face justice. The case continues to unfold, with legal experts calling it one of the most complex healthcare-related financial frauds in recent Indian history.
