What seemingly appeared as routine clinical research at Ahmedabad’s VS Hospital has now turned out to be one of the most serious allegations of medical misconduct in recent years. Behind closed doors, dozens of clinical drug trials were allegedly conducted on unsuspecting, poor patients—not just under a cloud of secrecy, but through calculated exploitation of regulatory loopholes, suppressed oversight, and ostensibly a well-oiled system of kickbacks. The scandal reveals a damning nexus between hospital officials, pharmaceutical companies, and private ethics committees, all operating in the shadows of India’s fragile healthcare safeguards.
As has been reported by Vibes of India and other media outlets, between 2021 and 2024, 58 clinical drug trials were carried out at VS Hospital. Normally, pharma firms are expected to pay 40% of the total trial cost to the hospital as an establishment fee. A national newspaper has reported that hospital officials reportedly charged just 10%, and according to Ahmedabad Municipal Corporation (AMC) sources, some pocketed the remaining 30%, enabling pharmaceutical companies to save crores—even after allegedly compensating doctors via cash or bank transfers.
AMC sources explained that the manipulation began after a 2019 restructuring, which resulted in VS Hospital being separated from NHL Medical College’s ethics committee. It meant that VS Hospital no longer fell under its ethics jurisdiction. Officials believe this allowed VS Hospital to obtain approvals from private ethics committees within a 50 km radius—circumventing the SVP Hospital ethics committee next door, which would have enforced the full 40% fee.
AMC officials told the media house that this tactic exploited loopholes in central government clinical trial laws and Drug Controller General of India (DGCI) guidelines. They suspect that Medical Education Trust (MET) officials may have been aware of the situation and that some pharmaceutical companies possibly paid bribes to doctors, MET personnel, and agents to conduct trials at VS Hospital.
Meanwhile, as part of the ongoing investigation, Dr Devang Rana, the suspended clinical trial head and associate professor, appeared before the AMC investigation committee yesterday. During the proceedings, he reportedly maintained his innocence and claimed that in 2021, a letter had been received stating that the then deputy municipal commissioner approved the use of private ethics committees. He said clinical trials were conducted with the approval of the medical college dean and the VS Hospital superintendent. Rana also said that documents related to the trials had been stolen and that he had informed the dean and superintendent in writing.
Dr Manish Patel, the retired superintendent of VS Hospital, also appeared before the five-member AMC investigation committee on Friday. His statement, which lasted six hours, reiterated that the clinical trials at the hospital were legal and in line with government laws and DGCI guidelines.
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