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AMC Seeks Rs 1.87 Crore Recovery, Suspends Clinical Trials at VS Hospital

Recovery orders require doctors to return diverted funds alongside new ethics oversight procedures imposed by regulators

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Overview

  • A municipal probe found 15 doctors siphoned off Rs 1.87 crore from 65 clinical trials at VS General Hospital between 2021 and 2025
  • Ahmedabad Municipal Corporation has issued recovery notices to implicated doctors, with five already repaying portions of the misappropriated funds
  • Nearly all ongoing and proposed trials have been suspended or cancelled, leaving just one study active under heightened scrutiny
  • The Drugs Controller General of India conducted a parallel inquiry and confirmed administrative and financial regulations were breached during the trials
  • VS Hospital will pause new research until it establishes its own ethics committee, implements standard operating procedures and secures permissions from the DCGI