Fraud, black magic & Rs 1,250 cr missing: Lilavati Hospital under scanner

Mumbai's Lilavati Hospital has been rocked by shocking allegations, with trustees facing fraud, occult ritual claims, and a massive financial misappropriation probe

Mumbai’s renowned Lilavati Hospital is at the centre of a massive financial scandal, with allegations of Rs 1,250 crore misappropriated over the past two decades. The hospital’s trust has filed an FIR against 17 people, including former trustees, equipment suppliers, and vendors, for their alleged role in embezzling funds.

 

Adding to the controversy, trustees have also accused former board members of conducting "black magic rituals" inside the hospital premises, claiming that human remains, hair, and ritualistic items were found buried beneath the office floor, according to a report by the Indian Express.

 

Hospital trust accuses former trustees of massive fraud

 

Addressing the media on Tuesday, former Mumbai Police Commissioner Param Bir Singh, now the Executive Director of Lilavati Hospital, alleged that the previous trust engaged in widespread financial fraud and mismanagement.

 

 

He said the current board of trustees, after taking charge, commissioned a forensic audit, which uncovered financial irregularities amounting to Rs 1,250 crore. When permanent trustee Prashant Kishore Mehta approached Bandra Police to file an FIR, they refused, prompting him to take the matter to Bandra Court. The court then directed the police to register the FIR, and the case may soon be handed over to the Economic Offences Wing (EOW).

 

According to the FIR, the accused former trustees, in collaboration with vendors and third-party suppliers, allegedly inflated procurement costs and diverted funds meant for medical equipment, hospital furniture, computers and office supplies, ambulances and vehicles, surgical consumables and medicines, and legal expenses. The Bandra Police have registered a case under multiple sections of the Indian Penal Code (IPC), including 403, 406, 409, 420, 465, 467, 471, 474, and 34, for criminal breach of trust, forgery, and cheating.

 

Three FIRs already filed against former trustees

 

This is not the first complaint against the hospital’s previous management. The first FIR was registered in July 2024 over a Rs 12 crore fraud involving cheating and forgery. The second FIR, filed in December 2024, alleged that Rs 44 crore was siphoned under the pretext of legal fees. The third FIR, registered in March 2025, uncovered Rs 1,250 crore in financial irregularities linked to procurement scams.

 

The Enforcement Directorate (ED) has also been approached to investigate potential money laundering and foreign asset accumulation linked to the case.

 

Black Magic allegations shake the hospital

 

In addition, the current trustees claim to have discovered black magic rituals performed by previous trust members inside the hospital’s premises.

 

According to Param Bir Singh, several employees reported unusual activities in the office occupied by trustee Prashant Mehta and his mother, Charu Mehta. When investigated, they found eight urns buried beneath the office floor. These pots contained human remains, bones, hair, rice, and other materials associated with occult practices. Singh stated that when police refused to register a case, the trustees moved the Bandra Court, which has now ordered an inquiry under Section 228 of the Bhartiya Nagrik Suraksha Sanhita (BNSS).

 

Maharashtra’s law against black magic

 

Maharashtra has strict laws against superstition and black magic under the Maharashtra Prevention and Eradication of Human Sacrifice and Other Inhuman, Evil, and Aghori Practices and Black Magic Act, 2013. This law criminalises any practices that exploit people’s beliefs in the supernatural for personal gain or harm others. If the allegations are proven, those involved could face serious legal consequences.

 

'Biggest fraud in the healthcare industry'

 

Trustee Prashant Mehta has called this the "biggest fraud in the hospital industry," stating that the misused funds could have built three more hospitals for the needy.

 

Mehta further said the trust is committed to upholding the integrity of the Lilavati Kirtilal Mehta Medical Trust and ensuring that funds meant for healthcare services are used solely for the benefit of patients.

 

He added that the forensic audit revealed large-scale financial misappropriation by the previous trustees, most of whom are non-resident Indians based in Dubai and Belgium.

 

The case is now under active investigation, and authorities may soon seize foreign assets linked to the accused. The EOW and ED are also expected to intensify their probe in the coming weeks.

 

(With agency inputs)