Congress councillor claims inaction, hush up in ₹18-cr clinical research scam at AMC-run VS Hospital

The controversy surrounding the ₹18-crore clinical research scam at Amdavad Municipal Corporation (AMC)-run V S Hospital has resurfaced, nearly a year after it first came to light, raising serious questions over administrative inaction and alleged attempts to bury the issue.

Chandkheda Congress Councillor Rajshree Kesari raised the matter during the AMC board meeting. Kesari had sought details under the ‘point of information’ agenda. The councillor questioned why no further action was taken after only ₹35 lakh was recovered from 14 doctors, despite the alleged scam involving ₹18 crore and accusations of grave ethical and financial misconduct.

Kesari made a strong representation in the board meeting, asking why the civic administration had failed to initiate further recovery proceedings, lodge police complaints, or take disciplinary action against the doctors involved. However, her intervention was reportedly stopped midway, and no reply was given by the administration or ruling authorities, including senior civic officials.

According to details placed before the AMC, V S Hospital received a total of 65 clinical research projects between 2020 and 2025. Of these, 48 clinical trials were completed. Following the exposure of irregularities and allegations of a large-scale scam, the AMC constituted an inquiry committee to investigate the conduct of the trials and the handling of funds.

Despite the inquiry, recovery has been limited to ₹35 lakh from 14 doctors so far. Kesari pointed out that recovery of money alone does not absolve those involved of criminal or ethical wrongdoing. She alleged that the scam involved serious tampering with the health and safety of poor patients, and that the matter appeared to have been deliberately hushed up.

The councillor further stated that substantial recoveries are still pending. According to her, ₹93 lakh is yet to be recovered from Dr Dhaiwat Shukla, while ₹58 lakh remains to be recovered from Dr Devang Rana.

She questioned why the municipal commissioner, mayor and other senior office-bearers of the ruling party had failed to ensure recovery of the remaining amounts or initiate criminal proceedings.