A probe committee in Gujarat has uncovered serious financial irregularities in 65 human clinical trials conducted at VS General Hospital, managed by the Ahmedabad Municipal Corporation (AMC). According to a senior AMC official, 15 doctors allegedly diverted at least ₹1.87 crore from pharmaceutical-sponsored trials directly into their personal bank accounts between 2021 and 2025—funds that should have first gone to the hospital.
According to a media report, eight contractual doctors were dismissed and one faculty member was suspended in April. The final report, submitted last week, confirms that a total of ₹1,87,31,000 was deposited into the personal accounts of the doctors, including:
- ₹3.25 lakh in the account of a former Medical Superintendent
- ₹56.04 lakh in the account of an Associate Professor
- ₹91.83 lakh in the account of another senior doctor
- Between ₹20,000 and ₹4 lakh in the accounts of 12 other doctors
In contrast, only ₹10.63 lakh was deposited in the hospital’s official account during the same period, said Manish Trivedi, Director of AMC Medical Education Trust (AMCMET) and a member of the five-member probe panel.
Irregular Clinical Trial Agreements and Ethics Oversight
The investigation also revealed inconsistencies in clinical trial agreements, with 58 contracts showing varying formats and unclear financial terms. Additionally, since 2019–20, after its separation from NHL Municipal Medical College, VS Hospital has lacked an in-house ethics committee, resulting in 58 trials being approved by private ethics panels.
From January 1, 2021, to 2025:
- 65 clinical trials were either registered with the Clinical Trials Registry of India (CTRI) or listed in contracts
- 48 trials were completed, 10 ongoing, and 7 yet to begin
The trials involved 34 pharmaceutical companies and were coordinated by 8 Site Management Organisations (SMOs).
No Harm to Patients Confirmed Yet
An AMC official stated there is no current evidence of harm to patients enrolled in these trials. However, the incident has raised concerns about the integrity and oversight of both financial and clinical practices.
Action Against Accused Doctors
Of the 15 doctors:
- Two senior doctors have received chargesheets
- Eight were terminated in April
- Five had resigned before the probe
A designated AMC officer will oversee the inquiry over the next 3–4 months, said Deputy Municipal Commissioner Bharat Parmar.
Recovery of Funds
The current Medical Superintendent of VS Hospital will issue recovery notices to all involved doctors. If repayments are not made, AMC may initiate further action.
Evidence Trail
The probe relied on bank transaction records, Unique Transaction Reference (UTR) codes, and documents provided by SMOs. These firms facilitated the tracing of funds, as all transactions were via direct bank transfers, not cash.
AMC has also sought guidance from the Drugs Controller General of India (DCGI), which responded by confirming financial misconduct and advising a formal inquiry.
This case represents a significant breach of financial protocol and medical ethics, calling into question the governance of clinical trials in municipal healthcare institutions.