Lilavati Hospital Trustee Rajesh Mehta terminated over financial fraud, coercion allegations
Mumbai: In a major development, the Lilavati Kirtilal Mehta Medical Trust, which manages Lilavati Hospital and Research Centre, on Monday terminated permanent trustee Rajesh Mehta following allegations of financial fraud, coercion, and attempts to take control of the institution.
Rajiv Mehta, another trustee of the hospital, said that the majority of the board decided to terminate Rajesh Mehta for what he described as “an illegal act done with Param Bir Singh.”
Speaking to The Indian Express, Rajiv Mehta said, “We got the confirmation of the charity commission at 3 pm today.” The Charity Commission reportedly observed that Rajesh Mehta was involved in coercion, intimidation and interference in the Trust’s functioning. The termination letter termed his conduct as “extremely dangerous and unacceptable,” stating that he was incapable of acting in the Trust’s interest. A Circular Resolution dated February 16, 2026, was passed by the majority of trustees for his removal.
During a preliminary review conducted by the hospital’s Chief Financial Officer, Satish M. Shroff, who joined on January 21, flagged serious financial irregularities. His report indicated that advances amounting to nearly Rs 34 crore were paid between April and December 2025 to vendors for pharmacy supplies, surgical consumables, and infrastructure projects, but no materials were delivered.
Four companies, including Pharma Chemist and Distribution Pvt Ltd, Aetronomic Healthcare Pvt Ltd, Wellness Orthocare LLP, and Medipharma, reportedly received over Rs 30.5 crore collectively without supplying goods.
The Hospital’s CFO Shroff compiled the list of irregularities, and on February 14, 2026, he wrote to chairperson Charu Mehta, Rajiv Mehta, Prashant Mehta and COO Dr. Niraj Uttamani outlining the findings.
Following this, the Trust prepared a recovery suit in the Bombay High Court against Mehta, Singh, and their associates, alleging collusion and fraud.
Medical Dialogues had earlier reported on the developments surrounding Lilavati Hospital and Research Centre, where former Mumbai Police Commissioner Param Bir Singh was removed from his post as Executive Director soon after he filed a criminal complaint against members of the Lilavati Kirtilal Mehta Medical Trust (LKMMT). Singh, who had been appointed in July 2024 for a five-year term, challenged his termination before the Charity Commissioner, calling it illegal and not in line with due process.
On the other side, trustee Rajiv Mehta maintained that Singh’s removal was justified and that his complaint lacked legal merit. Rajiv Mehta and Prashant Mehta also accused Singh and permanent trustee Rajesh Mehta of fabricating the minutes of a July 2024 board meeting in an alleged attempt to take control of the trust. In a complaint dated February 6 to the Deputy Commissioner of Police (Zone IX), Prashant Mehta alleged that Rajesh Mehta, Singh and six former employees were involved in a criminal conspiracy, including falsifying records and diverting over Rs 100 crore from trust funds.
