Lilavati Hospital ₹1500 Crore Fraud, Bones and Black Magic | ISH News

Mumbai’s Lilavati Hospital, one of India’s most trusted healthcare institutions, is now at the center of a shocking controversy. The hospital, known for treating top Bollywood actors—including Saif Ali Khan recently—has come under scrutiny for alleged financial fraud and even black magic practices.
What is the Controversy?
Lilavati Hospital is managed by the Lilavati Kirtilal Mehta Medical Trust (LKMMT). The current trustees have accused former trustees of misusing over ₹1,500 crore of hospital funds through fake transactions, bribes, and illegal international deals over the last 20 years. They have filed complaints with the police and the Enforcement Directorate (ED) to investigate the matter.
Serious Financial Fraud Allegations
A forensic audit revealed shocking findings about financial mismanagement by former trustees, many of whom are NRIs living in Dubai and Belgium. Key findings include:
₹1,200 crore misused through fake purchase deals and fraudulent distributor contracts.
₹44 crore wrongly billed as legal expenses.
₹11.52 crore illegally invested in companies like Mayfair Realtors and Vesta India without proper records.
A ₹500 crore tax demand from the Income Tax Department against the hospital.
Auditors submitted five reports proving these allegations, leading to multiple police complaints.
Black Magic Claims Inside the Hospital
Adding to the shocking claims, the current trustees have also alleged that black magic was performed on the hospital premises. According to Parambir Singh, Executive Director of Lilavati Hospital and former Mumbai Police Commissioner, some employees found strange objects hidden under the floor of the trustees’ office.
In front of witnesses and on video, the team dug up the floor and discovered eight urns containing human remains, bones, hair, rice, and other items linked to black magic practices. Initially, the Bandra Police refused to register a case under Maharashtra’s anti-black magic law, but the trust approached the magistrate, who ordered an inquiry.
Legal Action Taken
Parambir Singh revealed that Lilavati Hospital was built in 1997 by the late trustee Kishor Mehta and his wife Charu Mehta. However, after 2002, some of their relatives allegedly took illegal control of the hospital while Mehta was sick and controlled it for the next 20 years.
Once the current Board of Trustees took over, they hired forensic auditors who exposed the fraud. As a result:
More than three FIRs have been registered against 17 people, including seven former trustees, equipment suppliers, and vendors.
The first FIR was filed in July 2024 at Bandra police station, followed by a second FIR in December 2024.
A fourth case regarding black magic is pending before the Magistrate.
The Economic Offences Wing (EOW) is now handling the investigation.
Impact on Patients and Hospital Reputation
Lilavati Hospital serves thousands of patients daily, and this controversy has raised serious concerns about financial transparency and governance in charitable hospitals. One trustee stated that the misuse of funds has affected patient care, used up charity funds, and badly impacted hospital operations.
“Money meant for healthcare and donations were used for personal gain. This is a betrayal of public trust,” he added.
The current trustees have assured that they are working to clean up the corruption and ensure accountability. They have urged authorities to take swift action so that justice is served, and Lilavati Hospital regains its reputation as a trusted healthcare institution.

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