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Ahmedabad: A major financial scandal has rocked VS General Hospital after a probe revealed that 15 doctors allegedly diverted nearly Rs 1.87 crore from clinical trial funds to their personal accounts. The findings, detailed in a report by a five-member panel appointed by the Ahmedabad Municipal Corporation (AMC), point to significant irregularities in the handling of funds from about 65 human clinical trials conducted at the hospital since 2021.
The hospital, managed by AMC, has been a site for numerous clinical trials funded by pharmaceutical companies and research organisations. According to the probe, all clinical trial funds were supposed to be deposited into the hospital’s official account before being distributed among the doctors involved. However, the committee found that this protocol was routinely bypassed, with substantial amounts transferred directly to personal accounts of the doctors.
Breakdown of Alleged Misappropriation:
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Rs 3.25 lakh deposited in the account of a former Medical Superintendent
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Rs 56.04 lakh in the account of an Associate Professor
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Rs 91.83 lakh in the account of another doctor
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Amounts ranging from Rs 20,000 to Rs 4 lakh in the accounts of 12 other doctors
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Only Rs 10.63 lakh was deposited in the hospital’s official account during this period
The panel’s report led to the dismissal of eight doctors in April, while five others had resigned before the investigation began. Three doctors, including a former Medical Superintendent and an Associate Professor, have been chargesheeted and will face a hearing before an AMC-designated officer in the coming months.
The investigation was aided by Site Management Organisations (SMOs), which provided bank transfer records and documentation, helping the committee trace the flow of funds. Notably, the Drugs Controller General of India (DCGI) has since barred VS Hospital from conducting any further clinical trials after it was discovered that 58 of the 65 trials conducted since 2021 were unauthorised and lacked proper approvals or ethical oversight.
The AMC has issued notices to the accused doctors demanding repayment of the diverted funds and has indicated that further action may be taken if the money is not returned. Nearly 50 pharmaceutical companies are also under scrutiny for their involvement in the unauthorised trials.
Disclaimer:
This article is based on information available as of July 1, 2025, and reflects the findings of ongoing investigations. The allegations against the doctors and hospital staff are under official review, and no individuals have been convicted in a court of law. All parties are presumed innocent until proven guilty. Further developments may alter the context or outcome of these proceedings.
