15 Gujarat doctors accused of diverting Rs 1.87 crore from clinical trials to personal accounts

Ahmedabad: Around 15 doctors of VS General Hospital have been accused of transferring nearly Rs 1.87 crore meant for the hospital directly to their personal accounts from 2021, as revealed in a report prepared by Ahmedabad Municipal Corporation's five-member probe panel, which found financial irregularities in about 65 human clinical trials conducted at the hospital. 

The hospital, run by the Ahmedabad Municipal Corporation (AMC), has been the site for 65 human clinical trials since 2021. A five-member probe panel set up by AMC has now submitted its final report, confirming large-scale irregularities and misuse of funds received from pharmaceutical companies and research firms.

Among the accused doctors, a former Medical Superintendent, an Associate Professor and another doctor have been handed chargesheets. Their case will be heard by an AMC-designated officer in the next three to four months, who will advise the civic body on further action.

Also read- VS Hospital Clinical Trials Row: Suspended Associate Professor alleges harassment, document tampering

Of the other doctors, eight were dismissed from service in April, following the preliminary probe initiated following complaints raised by Rajshi Kesari, who is a Congress councillor at AMC. Five others had left their jobs before the investigation began.

Medical Dialogues recently reported that the Drugs Controller General of India (DCGI) has barred VS Hospital from conducting any further clinical trials after an official probe uncovered that the hospital allegedly conducted 58 unauthorised trials between 2021 and April 2025, without proper approvals or ethical oversight.

Previously, nine doctors were suspended, and nearly 50 pharmaceutical companies came under scrutiny for their role in unauthorised clinical drug trials conducted at the hospital without mandatory approvals.

Now, an AMC official confirmed that all 15 doctors accused of financial irregularities appeared before the committee and submitted their statements. 

According to the expert panel, all money for clinical trials should first go into the hospital's official bank account, and only then be shared among the involved doctors, but it found that this was not followed.

The panel included Manish Trivedi, director of AMC Medical Education Trust (AMCMET), NHL Medical College Dean Dr Cherry Shah, VS Hospital Pharmacology HOD Dr Supriya Malhotra, VS Hospital Medical Superintendent Dr Parul Shah and AMC Vigilance Director Hina Bhathawala.

Commenting on the matter, Manish Trivedi told The Indian Express, “A total of Rs 1,87,31,000 was found deposited in the bank accounts of 15 doctors at VS Hospital of which Rs 3.25 lakh was in the account of a former Medical Superintendent, Rs 56.04 lakh in the account of an Associate Professor, and Rs 91.83 lakh in the account of another doctor. Amounts ranging from Rs 20,000 to Rs 4 lakh were found deposited in the personal bank accounts of 12 other doctors. During this time, only Rs 10.63 lakh was deposited in the bank account of VS General Hospital."

After a preliminary report submitted by the AMC’s five-member probe panel had led to the dismissal of eight contractual doctors and the suspension of a faculty member in April, the committee in its final report said that starting January 1, 2021, a total of 65 clinical trials had either been registered with Clinical Trials Registry of India (CTRI) or listed in agreements signed with VS Hospital. Of the 65 trials, 48 had been completed, ten were underway, and seven were yet to begin, for which agreements had been signed.

The trials included those of drugs and formulations from 34 different pharmaceutical companies and clinical research firms, and were being managed by eight Site Management Organisations (SMOs) who liaise between drug manufacturers and research organisations, and VS Hospital.

These SMOs, which act as coordinators between pharma companies and the hospital, helped uncover the financial trail by providing bank transfer records and documents related to the trials.

Trivedi said, “SMOs maintain archival documents of the trials as well as medical aspects of one or more sites (hospitals) where a particular clinical trial is being conducted. They also have the responsibility of safekeeping these documents for a certain number of years. Ultimately, when VS Hospital is chosen as a site, and the trial begins, invoices are generated from the hospital and given to SMOs who then take the money from pharma companies or research organisations and give it to the hospital or principal investigator of that trial."

“The SMOs helped the panel find the paper trail because, in clinical trials, there are no cash transactions; everything is done by direct bank transfer. They gave us Unique Transaction Reference codes for all the transfers by which the committee tracked where the money had gone. We have taken their statements as well,” he said.

When asked about the recovery of funds, Trivedi said, “The current Medical Superintendent of VS Hospital will issue notices to all the doctors, asking them to pay back the amounts they received for the clinical trials. If they do not do so, the AMC reserves the right to take further action for the recovery of the money."

An AMC official said the AMC has also written to the Drugs Controller General of India (DCGI), which reverted with an opinion that financial irregularities had been found and an appropriate inquiry must be carried out.

Also read- 58 Unauthorised Clinical Trials Spark DCGI Ban on VS Hospital, Doctors, Pharma Giants Under Fire