The accused include an Assistant Accounts Officer, 8 group-D staff of the hospital and 2 outsiders.
According to hospital authorities, the accused tampered the IT enabled payment system through the electronic clearing system (ECS) from the salary account of the hospital and committed the crime.
"On receipt of information, an inquiry committee of finance and IT officers was constituted. The preliminary inquiry report reveals a case of misappropriation of funds, through ECS transfer from the salary account of LNH," the hospital said in a statement.
Based on the preliminary findings, an FIR was registered against the accused on September 6 by the Medical Superintendent of the hospital.
Assistant Accounts Officer and 8 group-D staff have been placed under suspension and departmental action initiated against them. Special audit of financial transactions at LNH by an external team has been ordered. The bank accounts of the employees in question have been frozen and process has been initiated for recovery of unauthorised ECS transfers, said the statement.
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