A serious scandal has emerged at VS General Hospital in Ahmedabad, Gujarat. A probe committee has revealed significant financial irregularities in clinical trials conducted at the hospital from 2021 to 2025. The investigation found that 15 doctors allegedly diverted ₹1.87 crore from trials sponsored by pharmaceutical companies into their personal accounts. This is a shocking breach of trust in a public healthcare institution.
According to the findings, a total of ₹1,87,31,000 was deposited into the doctors’ accounts, while only ₹10.63 lakh made it to the hospital’s official account. This stark contrast raises concerns about financial management at the hospital. The investigation led to the dismissal of eight contractual doctors and the suspension of one faculty member in April.
The probe revealed that the clinical trial agreements were poorly managed, with 58 contracts showing unclear financial terms. VS Hospital has lacked an in-house ethics committee since separating from NHL Municipal Medical College in 2019-20. Instead, the hospital relied on private ethics panels for approvals, which could compromise the integrity of the trials.
From January 2021 to 2025, 65 clinical trials were either registered or listed in contracts. Out of these, 48 trials were completed, 10 were ongoing, and 7 had yet to begin. The trials involved 34 pharmaceutical companies and were coordinated by eight Site Management Organisations (SMOs). Despite these irregularities, there is currently no evidence that patients enrolled in these trials have been harmed.
The actions against the accused doctors included chargesheets for two senior doctors and termination for eight others. Five doctors had resigned before the investigation began. A designated AMC officer will oversee the ongoing inquiry, which is expected to last for the next three to four months.
The current Medical Superintendent of VS Hospital will issue recovery notices to the involved doctors. If they do not repay the diverted funds, the AMC may take further action against them.
Evidence for the probe came from bank transaction records and documents provided by the SMOs, which helped trace the funds. The AMC has also sought guidance from the Drugs Controller General of India (DCGI), which confirmed financial misconduct and advised a formal inquiry into the matter.
This case highlights the need for stricter oversight in clinical trials and raises questions about the governance of such trials within municipal healthcare institutions. It calls for reforms to protect both the integrity of clinical research and the welfare of patients involved in these trials. The investigation serves as a reminder of the importance of ethical practices in healthcare, especially in public institutions that serve vulnerable populations.
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