Final Order 1

Order Details: Order Below EX 1
Pdf Text: C. C. No. 27 SW 2025
Lilavati Kirtilal Mehta Medical Trust Vs Chetan and ors.
CNR-MHMM18-001974-2024
ORDER BELOW EXH.1
1. By way of this lengthy application running in several pages,
pleading minute details of financial transactions done by respondents, the
applicant, Lilavati Kirtilal Mehta Medical Trust, hereinafter referred as
trust, approached this court through, Mr. Prashant Mehta, it’s authorized
representative, under Section 175(3) of Bharatiya Nagarik Suraksha
Sanhita, 2023, for short B.N.S.S., seeking direction to register the offence
against respondents i.e. proposed accused persons alleging that they had
committed certain cognizable offences, as narrated in this application.
2. The application is supported by affidavit. Compliance of Section
173(4) of B.N.S.S., also done. The notice was issued to Bandra Police
Station, Mumbai. The offences alleged are of cognizable nature. Thus, all
the basic requirements are satisfied.
3. The summary of the allegations is that there was fierce legal battle
between the present office bearers of trust and Respondent Nos.1 to 7, i.e.
erstwhile office bearers of the trust, about the control over it. The trust
mainly runs Lilavati Hospital, at Bandra West, Mumbai. The present
office bearers after a long legal fight for about twenty years gained
control of the trust by the order of Supreme Court, dated 18.09.2023.
After assuming office, the present trustees found several illegalities in the
conduct of the business of the trust, mainly hospital run by it.
4. After assuming office, the present office bearers carried out
forensic audit of the accounts and transactions to ascertain their
genuineness through a reputed forensic audit firm Chetan Dalal
Investigation and Management Services Private Limited. After
examination of data in two computers operated by previous Finance
Directors of the hospital, they found several irregularities and illegal acts
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C. C. No. 27 SW 2025
Lilavati Kirtilal Mehta Medical Trust Vs Chetan and ors.
CNR-MHMM18-001974-2024
committed by respondents in Purchase and Procurement Department of
the hospital. It prepared detailed report and found that while making
purchases and procuring medicine and several other articles of value of
Rs.1243,09,92,597/- (Rs. Twelve Hundred and Forty Three Crores Nine
Lacs Ninety Two Thousand and Five Hundred Ninety Seven), the
respondents committed several illegal acts and siphoned off crores of
rupees. For doing so the Respondent Nos.1 to 7, the previous office
bearers take the help of Respondent Nos.9 to 13, 15 and 17, who are
running respondent companies, i.e. Respondent Nos.8, 14 and 16, by
ignoring the standard operating procedure of purchases adopted by the
trust. The summary of these alleged illegal acts, is as -
i. The trust is having a robust, self sufficient procurement and purchase
department, despite that respondents engaged new entity i.e. Respondent No.8,
Akna Medical Private Limited, for supplies with intention to remit the bills for
goods which are not actually supplied and misappropriated the huge amount.
ii. The respondents created alternate domain name and created alternate email
ID of the hospital for transacting interse, to suppress conceal their acts and
activities from the trust.
iii. In order to justify deceitful transactions, the Akna Medical Private Limited,
in connivance with Respondent Nos.14 and 16, used this alternate domain
name and created bogus agreement named as Letter of Intent (L.O.I.) and taken
away huge funds of the trust for the goods which are not actually supplied.
iv. About purchases made also the goods were supplied showing inflated rates,
with a view to grab trust funds.
v. Ignoring the procedure to appoint suppliers, without conducting any
inquiry and observing due diligence of Respondent No.8, company, the
services were employed for longer duration. While doing so the antecedents of
the company, risk analysis, etc. factors were not considered.
vi. The approval of Board of Directors, also not obtained for this
appointment. The confidential business information was revealed to third
parties and deliberately several acts done to cause loss to the trust for wrongful
gain to the respondents.
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C. C. No. 27 SW 2025
Lilavati Kirtilal Mehta Medical Trust Vs Chetan and ors.
CNR-MHMM18-001974-2024
vii. The procedure to maintain and disburse the stalk not followed and no
documentary record of transactions maintained.
viii. The other relevant record also not maintained properly and protocol not
followed. Rather while leaving office and before assuming the office of the
trust by present trustees, the respondents attempted to destroy the evidence.
ix. After going through the whole record, various documents and report of
forensic analysis the trust now come to conclusion that there is manipulation or
falsification of accounts in it. The business of the trust lacks transparency and
legitimacy leading to misappropriation of huge amount by the respondents in
connivance with each other done in pursuance of premediated plan.
x. Therefore, the trust carried out forensic investigation and audited all the
record through reputed firms on three occasions and obtained their reports. It is
transpired from those reports that out of the total purchases or goods procured
of amount of Rs.1243,09,92,597/- (Rs. Twelve Hundred and Forty Three
Crores Nine Lacs Ninety Two Thousand and Five Hundred Ninety Seven), it’s
substantial part has been siphoned off by the respondents by committing fraud
on the trust and cheating it.
5. After revealing above facts, the applicant approached concerned
police station and it’s senior police officers, but as no action taken, he
filed the present application seeking direction to register the offence and
investigate the matter as per Section 175(3) of B.N.S.S.
6. It is submitted by the applicant that huge stake is involved. There is
prima facie evidence to show the illegalities done by respondents to
defraud the trust. Thorough investigation is necessary. Police is not taking
any action. Even if, it is transpired that no offence made out police can
file final report, but investigation is necessary as allegations constitutes
cognizable offences. Besides other submissions, Ld. Advocate also relied
on the set of documents produced by the applicant.
7. The say of concerned police station, Exh.6, has been filed on
record. It shows that the complaint was received from the applicant trust.
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Lilavati Kirtilal Mehta Medical Trust Vs Chetan and ors.
CNR-MHMM18-001974-2024
But the inquiry is still going on and the offence is not yet be registered as
the amount involved is high and investigation is complex, due to nature of
allegations. Thus, it seems that the report has been lodged by the
applicant, but the crime is not yet registered.
8. The documents on record shows that the Respondent Nos.1 to 7,
were office bearers of the trust at relevant time and were responsible for
the day to day affairs of the trust.
9. The another set of documents also show that Respondent Nos.1 to
7, appointed the Respondent Nos.8, 14 and 16, companies, which are
sister concerns, for supply of the medicine and other goods to the
hospital. The remaining respondents are various office bearers of those
companies who are responsible for the supply of goods and medicine, etc.
purchased by the hospital.
10. The reports of forensic analysis produced by applicant shows that
during the long span of time, the total goods of value of
Rs.1243,09,92,597/- (Rs. Twelve Hundred and Forty Three Crores Nine
Lacs Ninety Two Thousand and Five Hundred Ninety Seven), were
supplied to hospital and it’s record is not properly maintained. While
making purchases and supplying goods several illegalities found to be
committed by the respondents. It is opined by these experts that it resulted
in loss of crores of rupees to the trust. These reports are based on the
scrutiny of all the relevant documents pertaining to financial transactions
done by the trust during the period of office, held by respondents. It can
be said from these findings based on the record that there is substance in
the allegations.
11. The transactions in dispute are of several years and multiple/huge
in numbers. About such record the collection of evidence to draw the
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Lilavati Kirtilal Mehta Medical Trust Vs Chetan and ors.
CNR-MHMM18-001974-2024
logical conclusion involves so many acts to be done. The collection of all
the documents, examination of so many witnesses, collection of
electronic record and hardware. Approaching several authorities and
collecting documents from there along with the collection of evidence
from experts and other persons associated with finances or financial
transactions also seems necessary. Such exercise is not possible in the
court. The amount involved is huge. The trust funds were alleged to be
misappropriated, as such allegations are very serious. The facts pleaded in
this application and documents, collectively leads to inference that
cognizable offences has been transpired.
12. Though applicant initially approached police, no action was taken
and it is informed that inquiry is still going on, which is not expected.
Thorough investigation in all the allegations by collection of all the
evidence seems necessary. Such investigation without aid of police seems
impossible, therefore, the application needs to be allowed.
13. As the role of all the respondents transpired the offence needs to be
registered against all of them. Considering all these merits of the matter,
following order -
ORDER
A. Application is allowed.
B. The P.S.O. Bandra Police Station, Bandra, Mumbai, is herewith
directed to register the offence under Sections 403, 406, 409, 420, 465,
467, 471 and 474 r/w.34 of Indian Penal Code, against all the respondents
and investigate the matter as per Section 175(3) of Bharatiya Nagarik
Suraksha Sanhita, 2023.
C. The certified copy of the application, Exh.1, along with all the
documents produced shall be sent to concerned police station.
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C. C. No. 27 SW 2025
Lilavati Kirtilal Mehta Medical Trust Vs Chetan and ors.
CNR-MHMM18-001974-2024
D. Application is disposed off.
MUMBAI (KOMALSING RAJPUT)
DATE – 28.02.2025 J.M.F.C., 12TH COURT, BANDRA, MUMBAI
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