Mumbai's Lilavati Hospital Former Trust Members Booked for Alleged Misappropriation Of Funds Worth Rs 11.52 Crores

Mumbai: The former members of the Lilavati Hospital Trust have been booked by the Bandra Police for alleged financial misappropriation of funds worth Rs 11.52 crores.

Rashmi Mehta, Niket Mehta, Sushila Mehta, Bhavin Mehta, Chetan Mehta, Suresh Motwani, and other unidentified were booked based on the complaint lodged against them by a trustee of Lilavati, Prashant Mehta.

Based on the complaint filed by Prashant, the grandson of the founder of the Trust- Kirtilal Mehta, the FIR was registered on July 7 at the Bandra Police Station.

The accused six former board members have been booked under sections 420 (cheating and dishonestly), 406 (breach of trust), and 34 (common intention) of the Indian Penal Code.

Also Read: Theft worth Rs 45 crore: Lilavati Hospital Trustee moves Gujarat HC seeking FIR

As per the latest media report by the Free Press Journal, Prashant Mehta, who stays in Gamdevi, informed in the Complaint that he has been a permanent trustee since December 2023. After assuming the role, he started reviewing the documents of the hospital and noted some irregularities.

In the complaint, Prashant mentioned that Suresh Motwanim owner of two companies Mayfair Realtors Pvt Ltd and Vesta India Pvt Ltd received deposits worth Rs 2.30 crores in August 2001 from the Lilavati Trust, without any proper documentation explaining the purpose.

Further, the complaint highlighted that between March 2002 and June 2003, the amount of Rs 14.22 crores, which was intended for procuring hospital equipment, was allegedly transferred to these companies without fulfilling the procurement.

The complainant also claimed that the former board members conspired with someone named Vijay Mehta and deposited a total of Rs 16.52 crores from the trust into two company accounts. Out of this amount, Rs 11.52 crores were given to the companies in cash without maintaining any record of this amount.

"Since the time we took over, we have unearthed a scam of around Rs.500 crore by the erstwhile board members which includes lawyer fees paid for internecine private disputes amongst trustees, bogus donations, and bogus advances to real estate companies for equipment purchases. I have filed a case against former board members for misusing funds allocated for medical equipment procurement. It was discovered that the ex-board members involved in the fraud also own Mayfair Realtors Pvt Ltd and Vesta India Pvt Ltd. In one instance, Rs 2.30 crores were transferred to the Mayfair Realtors Pvt Ltd account in August 2001 but were not returned to the hospital trust fund with no documentation of their use. Similarly, during the fiscal year 2002-2003, Rs 14.22 crores meant for equipment procurement were given to Vesta Pvt Ltd owner without any equipment acquired," stated the complainant.

"The former board members diverted Rs.16.52 crores to Mayfair Realtors Pvt Ltd and Vesta India Pvt Ltd, failing to return Rs.11.50 crores to the trust fund. Such fraudulent activities undermine societal well-being, and we demand stringent action against those responsible," Prashant Mehta concluded.

Medical Dialogues had earlier reported that back in 2021, Prashant Mehta had moved the Gujarat High Court seeking directions to the police to lodge an FIR in connection to theft of the valuables worth more than Rs 45 crore belonging to the Trust that were stolen from a vault in the basement of Mani Bhavan in Palanpur city of Banaskantha district.

However, back then, the HC bench had rejected the plea allowing the petitioner to approach the concerned magisterial court.

Also Read: Gujarat HC rejects Lilavati hospital trustee's plea seeking FIR for Rs 45 crore theft