: The Enforcement Directorate (ED) has sought seven years of records from the Uttar Pradesh Medical Supplies Corporation Limited (UPMSCL) as it examines an alleged ₹100-crore scam in the procurement and supply of medicines and medical equipment to government health facilities in the state.
The development follows Uttar Pradesh Vigilance Establishment investigations into alleged irregularities in health-sector contracts involving former Payagpur MLA Mukesh Srivastava and his alleged associates.
In a July 13 letter to the health department, marked “most urgent”, the ED sought UPMSCL records for 2019-20 to 2025-26, including details of companies awarded tenders, supplies made, payments released, allegedly substandard medicines and equipment, action taken against suppliers and bank guarantees furnished.
The agency has also sought details dating back to 2013-14 of funds released to government hospitals in Bahraich, Balrampur, Gonda and Shravasti, their utilisation and medical reimbursements.
Officials said UPMSCL has yet to provide the records and has sought permission from the principal secretary, health, before sharing them with the ED. The agency has expressed concern over the delay and is already examining documents linked to FIRs registered in Shravasti and Balrampur.
The ED’s move widens the scope of the probe from alleged tendering irregularities to the financial trail of the procurement process—companies that secured contracts, supplies made, payments released and the subsequent movement of funds.
{{/usCountry}}The ED’s move widens the scope of the probe from alleged tendering irregularities to the financial trail of the procurement process—companies that secured contracts, supplies made, payments released and the subsequent movement of funds.
{{/usCountry}}The Vigilance probe has alleged that around nine companies were linked to Srivastava’s family members, relatives and close associates. One such group allegedly secured contracts worth more than ₹18 crore for medicines, medical equipment, furniture and maintenance.
The probe has further alleged collusion between Srivastava and health officials, including the alleged use of departmental GeM credentials by companies linked to him. Several officials, including two former CMOs of Bahraich and a junior engineer have also been booked.
Other alleged financial irregularities flagged by Vigilance include withdrawal of funds for operating three vehicles despite sanction for one, besides alleged violations in tendering and printing work.
Srivastava was arrested by Vigilance on July 10 in a disproportionate-assets case registered in 2023. The agency alleged that he accumulated assets disproportionate to his known sources of income during his tenure as Payagpur MLA from 2012 to 2017. Vigilance has also cited three
pending cases concerning alleged NRHM irregularities in Shravasti, Balrampur and Gonda.
Srivastava has denied the allegations and termed the action politically motivated.