An investigation into financial irregularities at VS General Hospital has revealed that 15 doctors diverted nearly ₹1.87 crore in funds from clinical trials into their own bank accounts. The funds, which should have been credited to the hospital first, were misappropriated over a period of four years, from 2021 to 2025.
Investigation Uncovers Large-Scale Financial Misconduct
The Ahmedabad Municipal Corporation (AMC) appointed a five-member committee to investigate complaints about missing funds related to clinical trials at the hospital. The probe found that out of the total money received from various drug trials, only ₹10.63 lakh was properly deposited in the hospital’s account. The rest of the ₹1.87 crore was diverted directly to the personal bank accounts of doctors involved in the trials.
Following the investigation, eight contractual doctors have been dismissed and one faculty member suspended. The AMC has yet to file a police complaint, but the investigation remains ongoing to uncover the full extent of the wrongdoing.
Clinical Trials and Discrepancies in Agreements
The clinical trials involved drug testing and bioequivalence studies for diseases such as diabetes, obesity, lupus, skin infections, and heart conditions. Many of these trials were multi-centric, carried out not only at VS General Hospital but also at other sites in India and abroad.
The panel’s report also highlighted serious issues in 58 clinical trial agreements. These documents, which should clearly define the terms of funding and revenue sharing, were found to be inconsistent. The financial distribution between the hospital and the doctors was unclear, contributing to the misuse of funds.
Impact on Medical Research and Public Trust
Clinical trials are a critical part of medical research, especially when they take place in government hospitals that serve millions of patients. The diversion of funds intended for these studies undermines the credibility of the hospital and raises questions about ethical practices in public healthcare research.
Experts say that such breaches can harm the future of clinical trials, as funding and transparency are vital to ensuring that new treatments are safe and effective. Patients and the public depend on strict oversight to maintain trust in medical research.
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Next Steps and Accountability
The AMC panel’s final report has set the stage for further action. While administrative steps have already been taken against some doctors, the hospital and authorities are expected to strengthen their financial monitoring processes to prevent similar cases in the future.
Authorities have not yet pressed criminal charges, but legal investigations could follow once all facts are established. This case highlights the urgent need for tighter controls on clinical trial funding and clear accountability mechanisms in government hospitals across India.