Forensic Audit found that a charity’s funds were misused by illegal erstwhile trustees
by Suman Gupta
Mumbai, 30th April 2024: Mr. Prashant Mehta, Permanent Trustee at Lilavati Hospital & Research Centre, Bandra Mumbai has exposed the financial misconduct revealed in the ongoing investigation into financial irregularities within the institution. This significant development highlights his dedication to transparency and accountability in handling the results of forensic audits that unearthed a major financial fraud amounting to Rs. 500 crores by erstwhile trustees’ board, making it the serious medical scam. Present during the press conference were Mr. Prashant Mehta- Permanent Trustee, Mr. Saurav Sharma- Trustee, Mr. Mohit Mathur and Adv. Mohammed Asim Shaikh.
Following the order dated December 14, 2023, the Founder Permanent Trustees Mr. Kishor Mehta and Mrs. Charu Mehta have officially appointed Mr. Prashant Mehta, Mr. Rajiv Mehta, Mr. Rajesh Mehta, Mr. Sanjay Shroff, Mr. Kiran Shah, Mr. Saurav Sharma, Mr. Palve and Mr. Mohit Mathur as the Permanent /Termed Trustees in accordance with clause 17 of the Trust Deed. It is important to mention that even the Constitutional Courts have refrained from interfering in these appointments and the operations of this Board since the order issued by the Ld. Asst Charity Commissioner on December 14, 2023.This Board currently holds legitimate authority over the Trust/Hospital operations.
In accordance with the Supreme Court’s Order dated September 18, 2023, the newly appointed Board has conducted an extensive audit of legal and consultant fees. The audit revealed that a significant amount of money, exceeding Rs. 100 crores, has been extravagantly spent on lawyers, advocates, and consultants up to the new board took over.
During the press conference at lilavati Hospital, Mr. Prashant Mehta said that a Forensic Audit found that around Rs. 200 crores from a charity’s funds were misused by the previous board. They used the money to pay lawyers and consultants for personal legal issues, which is not allowed. The Former Vice President, Mr. Ajay Pande, and their Principal advisor, Mr. Laxmi Narayanan, admitted to diverting funds for legal fees and showed proof to the Charity Commissioner. A large amount was paid to Mrs. Sushila Mehta’s lawyer, Mr. Amol Inamdar. During the Covid-19 Pandemic, about 10.75 Crore Rupees were spent on legal expenses even though courts were mostly closed.
“The former unauthorized board illicitly made false contributions to the newly established Madhulaxmi Trust, which had been in existence for less than a year when the donation was made. An exorbitant amount exceeding Rs.6 crores was transferred to the Trust by the illegal board. This indicates that the previous unlawful trustees not only engaged in illicit financial activities but also personally benefited from them. The donation was specifically instigated by Mr. Vijay Mehta, Mr. Niket Mehta, and Mrs. Sushila Mehta.” Add Mr. Prashant Mehta.
Prashant Mehta said that Trust funds were wrongly used by Mr. Vijay Mehta and Mr. Niket Mehta, who channelled the money to fake companies, M s. Vesta and M s. Mayfair Realtors Pvt. Ltd., under the guise of purchasing medical equipment. However, these companies were actually engaged in real estate activities unrelated to healthcare. Despite an advance of over Rs.15 crores, no medical equipment was ever received by the Trust Hospital as intended. The scheme, masterminded by Mr. Niket Mehta and his father, Mr. Vijay Mehta, aimed to siphon Trust funds for their personal benefit.
“In response to a complaint filed by Mr. Kishor Mehta and Mrs. Charu Mehta regarding this transaction, Mr. Niket Mehta falsely claimed that properties in Mahim and Lonavala had been recovered as compensation for the misused funds. However, it was later discovered that Mr. Niket Mehta had unilaterally sold these properties for his own profit, further perpetuating his fraudulent activities.” Said Prashant Mehta.
“The previous unauthorized board has engaged in numerous fraudulent activities that have been flagged by the income tax authorities. Expenses exceeding Rs.300 crores have been disallowed, leading to a substantial liability for the Trust. Importantly, Mr. Kishor Mehta and Mrs. Charu Mehta were kept unaware of these liabilities to prevent any potential complaints from them being raised” Adds Prashant Mehta.
“Furthermore, the illicit trustees have committed theft by breaking into a safe at a Trust Property in Palanpur, Gujarat, and stealing trust assets intended for the construction of an additional hospital. A criminal complaint for this theft has been filed in Gujarat Courts and is currently awaiting resolution. The former board members have defrauded the trust hospital through various transactions, resulting in a significant loss exceeding Rs.500 crores. This incident is considered one of the serious medical scams ” Said Prashant Mehta.
Prashant Mehta emphasized the importance of taking proactive steps to protect Lilavati Hospital’s reputation and maintain its dedication to delivering top-notch healthcare services. To achieve this, we are launching various charitable initiatives such as Sewa Camp, Roshni Camp, and Free Medical Check-up Camps. These programs were originally established by the Trust’s Founder Trustees to support the less fortunate members of society.
