An FIR has been filed in Chhattisgarh against health department officials and four companies over alleged irregularities in purchasing medical equipment and reagents worth over ₹750 crore in 2023, according to the police.
The case, registered by the Anti-Corruption Bureau (ACB) and the Economic Offense Wing (EOW), involves accusations of procuring these items without assessing their need or ensuring proper facilities at health centers. This led to significant financial losses for the state.
Details of the case
The FIR names officials from the Chhattisgarh Medical Services Corporation Ltd. (CGMSCL), the Directorate of Health Services, and four companies:
- Mokshit Corporation (Durg)
- CB Corporation (Durg)
- Records and Medicare System HSIIDC (Panchkula, Haryana)
- Shri Sharda Industries (Raipur)
No specific individuals have been named in the FIR so far.
Raids and evidence
Raids were conducted at over a dozen locations in Raipur, Durg, and Haryana, including premises linked to Mokshit Corporation, Shri Sharda Industries, and Records and Medicare System. Documents, electronic devices, bank account details, and other evidence were recovered during the searches.
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Background of the purchases
In 2021, under the previous Congress government, the Public Health and Family Welfare Department issued instructions for purchasing equipment for "Hamar Lab," a diagnostic center initiative.
In January 2022, the Directorate of Health Services requested CGMSCL to procure reagents and machines, leading to purchases in March-April 2023.
However, the purchases reportedly violated procurement procedures:
- No assessment was done to determine the requirement for reagents and machines at health centers.
- Many centers lacked the necessary infrastructure, such as proper storage facilities, electricity, or compatible equipment like CBC machines.
- The purchase was made without budgetary approval or administrative clearance, leading to ₹411 crore in unauthorised spending.
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Inflated costs and favouritism
Evidence suggests the CGMSCL bought reagents worth ₹300 crore from Mokshit Corporation and supplied them to over 200 primary health centers, many of which lacked CBC machines to use them. Reagents also lacked proper storage facilities.
Further investigations revealed inflated costs:
- EDTA blood sample tubes were purchased for ₹2,352 each, while other institutions bought them for just ₹8.50.
- CBC machines, available for ₹5 lakh in the market, were procured for ₹17 lakh each from Mokshit Corporation.
Mokshit Corporation, despite lacking a manufacturing unit, secured contracts by allegedly colluding with officials and manipulating the tender process. Only bids from Mokshit and its affiliated companies were approved, while others were disqualified on technical grounds.
Allegations of fraud
Between January 2022 and October 2023, CGMSCL is accused of making purchases worth billions of rupees in collaboration with Mokshit Corporation and its shell company, CB Corporation. The alleged fraud caused significant financial losses to the government, amounting to more than ₹750 crore.
The investigation continues as authorities analyze recovered documents and other evidence.
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