New DelhiThe biggest stir that has been creating a stir in Mumbai’s healthcare industry for the last one year is the case of Lilavati Kirtilal Mehta Medical Trust, This trust runs the famous Lilavati Hospital of Mumbai, This case took a new turn when the Supreme Court lifted the stay of the Bombay High Court in July 2025 and allowed the Economic Offenses Wing of Mumbai Police to continue the investigation, Now the latest update is that EOW has prepared to send summons to HDFC Bank MD and CEO Sashidhar Jagadishan, It is alleged that he took a bribe of Rs 2,05 crore and accepted a deposit of Rs 25 crore without the permission of the trust, However, the bank has completely rejected these allegations, The whole matter is going on since 2024 and a total fund diversion of Rs 1,300 crore is being said in it,
Lilavati Hospital is a public charitable trust established in 1978. The hospital is in Bandra and is a big name in the healthcare industry of Mumbai. The controversy started when an old family feud regarding control of the trust came to the fore again. In 2002–03, during permanent trustee Prashant Mehta’s father’s treatment abroad, his uncle Vijay Mehta took control of the trust, allegedly on the basis of forged documents. After this, 7 of his relatives were included in the trust. In December 2023, the Charity Commissioner removed all these and the control of the Trust again came into the hands of Prashant Mehta and former Police Commissioner Parambir Singh.
Forensic audit changed the picture
The new team decided to investigate the entire accounts of 20 years. What emerged in the forensic audit from 2004 to 2024 shook the entire city. It is alleged that around Rs 1,250 to 1,300 crore were taken out of the hospital through different routes. There were many big revelations like
- Investment of Rs 11.52 crore was reported in cash but not recorded in any record.
- Rs 44 crore was withdrawn in the name of “lawyer fees” whose entry is doubtful.
- Rs 12 crore went into cheating and fraud.
A total of 17 people have been named as accused, which include former trustees, vendors and suppliers. One of the accused, Chetan Mehta, is a citizen of Belgium.
Strange twist: the black magic angle
At the beginning of the investigation, it was claimed that human remains were found in 8 pots from the trust office. It is alleged that some trustees were performing black magic rituals. A separate FIR has been registered on this and the matter is still pending in the court. This angle makes the entire controversy more sensational.
FIR and court journey
- The FIR in this case has a long timeline.
- July 2024: First FIR on cheating and fraud.
- December 2024: Second FIR on lawyer fees of Rs 44 crore.
- March 2025: Third FIR on embezzlement of Rs 1,200 crore.
- June 2025: Fourth FIR on fake investment of Rs 11.52 crore.
- July 2025: Bombay High Court bans the investigation.
- 21 July 2025: Supreme Court lifted the stay and ordered EOW to continue the investigation.
- Now in November 2025, EOW has made preparations to deliver the summons to the top official of the bank.
what both sides are saying
The former trustee claims that during his time, major works were done in the hospital, fixed deposits increased from Rs 200 crore to Rs 500 crore and charitable work also increased. He says that all this is the result of “family dispute”. On the other hand, the new team of the trust says that this is public money and it was sent to the wrong place. He says that CBI should come into this matter.
current situation
EOW is rapidly progressing the investigation till 18 November 2025. Records are being seized, accused are being called and the CEO of the bank is also being included in the investigation. The Supreme Court has already said that “the truth should come out” in this case. If the allegations are proved then many old faces of the trust may go to jail and the reputation of the hospital will also be greatly affected.
This case started from a family feud and has reached a big financial scam. The further direction will depend on the decisions of the court and the action of EOW. If you prefer, I can also create a newsroom style long-form or SEO version of this story.
