Ahmedabad, April 24, 2025 – In a shocking revelation, the Ahmedabad Municipal Corporation (AMC) has uncovered a large-scale illegal clinical drug trial operation at its VS Hospital, implicating two doctors in unauthorized experiments on nearly 500 patients. The AMC is set to file a chargesheet against Dr. Manish Patel and Dr. Devang Rana for allegedly conducting trials without mandatory approvals and siphoning off funds meant for the hospital.

Key Findings of the Probe
- Unauthorized Trials: A special committee discovered that an illegally formed “ethics committee” greenlit 58 clinical trials since 2021 for private pharmaceutical firms, bypassing regulatory protocols.
- Financial Fraud: Instead of depositing 40% of trial funds with the hospital as required, the accused doctors allegedly diverted the entire amount—estimated at ₹1 crore (with more recoveries expected)—for personal gain.
- Patient Deaths Under Scrutiny: Three fatalities during the trial period are being investigated, though initial claims linking them to VS Hospital were debunked—records show the deaths occurred at SVP Hospital (two in cardiology, one in neurology).
Hospital Officials Under Fire
The AMC has issued notices to senior health officials, including:
- Dr. Cherry Shah (Dean, NHL College)
- Dr. Supriya Malhotra (Head of Pharmacology)
- Dr. Parul Shah (VS Hospital Superintendent)
Controversy Deepens: Dr. Parul Shah, who signed an unauthorized MoU with S4 Research for trials, is also part of the internal probe committee, sparking demands for her removal.
No Ethics Committee, Illegal Tie-Ups
Investigators confirmed that VS Hospital had no legally constituted ethics committee, a mandatory requirement. Shockingly, the accused doctors secretly partnered with four private hospitals to approve trials:
- Sangini Hospital, Satellite
- Riddhi Medical Nursing Home, Maninagar
- Shrey Hospital, Navrangpura
- Atman Hospital, Bopal-Ghuma
These collaborations violated central guidelines, which mandate prior approval and a 50-km radius limit for such tie-ups.
Funds Diverted, Rules Ignored
As per Drugs Controller General of India (DCGI) norms, trial funds should be distributed as:
- 40% to the hospital
- 40% to the lead investigator
- 15% to assistant investigators
- Remaining 5% to admin staff
However, AMC alleges the entire amount was embezzled, with no share reaching the hospital.
Opposition Demands FIR, Full Transparency
AMC Opposition Leader Shehzad Khan slammed the civic body for delayed action, stating, “Only junior doctors were suspended—why no action against the dean or superintendent?” He also demanded:
- An FIR against all involved
- Disclosure of drug names and pharma companies behind the trials
What’s Next?
- The AMC is finalizing the chargesheet against the two doctors.
- A deeper audit may expose more financial irregularities.
- The Gujarat FDA and Central Drug Standards Control Organization (CDSCO) could join the probe.
This scandal raises serious questions about patient safety, corporate influence in public hospitals, and accountability in clinical research. Stay tuned for updates as the investigation unfolds.
Why This Matters:
- Patient Rights Violated: Unapproved trials risk lives.
- Systemic Corruption: Funds meant for public health were stolen.
- Regulatory Failure: How did this operate unchecked for years?