Lilavati Trust Dispute: HC restrains former trustee, media from broadcasting embezzlement claims

Mumbai: In a new development in the Lilavati trust dispute, the Bombay High Court has restrained former permanent trustee Rajesh Mehta, former executive director Param Bir Singh, and a media house along with its editor-in-chief from publishing or broadcasting allegations that permanent trustees Rajiv Mehta and Prashant Mehta embezzled funds from the Lilavati Kirtilal Mehta Medical Trust (LKMMT), which runs the Lilavati Hospital and Research Centre in Bandra.

The interim order was passed in a defamation suit filed by the Lilavati Kirtilal Mehta Medical Trust and Rajiv Mehta and Prashant Mehta, who have sought Rs 4,000 crore in damages from Rajesh Mehta, Param Bir Singh, the media house, and its editor-in-chief.

Hindustan Times reported that a video shared on the YouTube and Instagram page of the media house on February 20, alleging that Rajiv Mehta and Prashant Mehta siphoned off Rs 100 crore from LKMMT.

Justice Milind Jadhav directed Rajesh Mehta, Param Bir Singh, and the broadcaster to file their affidavits in reply by March 13. In his interim order, the judge stated, “This sort of media trial creates serious doubts in the minds of the public at large, especially when Plaintiff No. 1 (LKMMT) - Trust is in the public domain and runs a reputable charitable hospital in the city of Mumbai.”

Medical Dialogues earlier reported on the ongoing dispute that arose from an ongoing conflict among Rajiv Mehta, Prashant Mehta, Rajesh Mehta, and Param Bir Singh. Tensions escalated after Param Bir Singh was removed from his position as executive director of LKMMT on February 5, following a criminal complaint he filed alleging malpractices within the trust. In response, Prashant Mehta filed a counter-complaint accusing Param Bir Singh and Rajesh Mehta of siphoning off Rs 100 crore from the trust and attempting to stage a coup to illegally take control of the hospital trust.

Param Bir Singh, who joined Lilavati Hospital as executive director in July 2024, has denied the allegations levelled by Rajiv Mehta and Prashant Mehta. He has also challenged his removal before the Charity Commissioner. The matter continues to be under judicial scrutiny, with the High Court’s interim order aiming to prevent further dissemination of the contested allegations while the defamation proceedings are pending.