Lilavati Kirtilal Mehta Medical Trust: What is the ₹1,300 crore Lilavati Hospital scam? It started with a family dispute..

The biggest issue that has rocked Mumbai's healthcare industry over the past year is the case of the Lilavati Kirtilal Mehta Medical Trust. This trust runs Mumbai's renowned Lilavati Hospital. The case took a new turn when the Supreme Court lifted the Bombay High Court's stay in July 2025, allowing the Mumbai Police's Economic Offenses Wing to continue the investigation. The latest update is that the EOW is preparing to summon HDFC Bank MD and CEO Sashidhar Jagdishan. He is accused of accepting a bribe of ₹2.05 crore and a deposit of ₹25 crore without the trust's permission. However, the bank has vehemently denied these allegations. The entire case has been ongoing since 2024, and a total of ₹1,300 crore in funds is alleged to have been diverted.

Lilavati Hospital is a public charitable trust established in 1978. The hospital is located in Bandra and is a prominent figure in Mumbai's healthcare industry. The controversy began when an old family feud over control of the trust resurfaced. In 2002-03, while permanent trustee Prashant Mehta's father was undergoing treatment abroad, his uncle Vijay Mehta allegedly took control of the trust using forged documents. Subsequently, seven of his relatives were added to the trust. In December 2023, the Charity Commissioner removed them all, and control of the trust returned to Prashant Mehta and former Police Commissioner Parambir Singh.

The new team decided to investigate the entire accounts of 20 years. The forensic audit from 2004 to 2024 revealed a shocking revelation. It is alleged that approximately ₹1,250 to ₹1,300 crore (approximately $1.25 billion) was siphoned from the hospital through various routes. Several major revelations were made, such as:

₹11.52 crore (approximately $1.52 billion) was reported as cash investments but was not recorded.

₹44 crore (approximately $4.4 billion) was withdrawn under the name "lawyer fees," a suspicious entry.

₹12 crore was lost in fraud and cheating.

A total of 17 people have been named as accused, including former trustees, vendors, and suppliers. One of the accused, Chetan Mehta, is a Belgian citizen.

Strange Twist: The Black Magic Angle
At the beginning of the investigation, human remains were claimed to have been found in eight pots at the trust office. It is alleged that some trustees were performing black magic rituals. A separate FIR has been filed on this matter, and the case is still pending in court. This angle makes the entire controversy even more sensational.

FIRs and Court Journey
This case has a long timeline of FIRs.
July 2024: First FIR on fraud and forgery.
December 2024: Second FIR on lawyer fees of ₹44 crore.
March 2025: Third FIR on embezzlement of ₹1,200 crore.
June 2025: Fourth FIR on fraudulent investments of ₹11.52 crore.
July 2025: The Bombay High Court stayed the investigation.
July 21, 2025: The Supreme Court lifted the stay and ordered the EOW to continue the investigation.
Now, in November 2025, the EOW is preparing to summon the bank's top official.

What Both Sides Are Saying
The former trustee claims that during his tenure, significant work was done at the hospital, fixed deposits increased from 200 crores to 500 crores, and charitable work also increased. He says this is all the result of a "family dispute." On the other hand, the new trustee team says this is public money and was misdirected. They say the CBI should be involved in this matter.

Current Status
As of November 18, 2025, the EOW is rapidly advancing the investigation. Records are being seized, accused are being summoned, and the bank's CEO is also being included in the investigation. The Supreme Court has already stated that "the truth must come out" in this case. If the allegations are proven, many former members of the Trust could face jail time, and the hospital's reputation will be severely impacted.

This case has evolved from a family feud into a major financial scam. The future course will depend on court decisions and the EOW's actions. If you prefer, I can also prepare a newsroom-style long-form or SEO version of this story.

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