Systemic corruption exposed in ₹500cr medical deal: Chhattisgarh vigilance agency

A chargesheet was filed by EOW in Raipur court on April 25 highlighting serious lapses by directorate of health services and Chhattisgarh medical services corporation limited

Raipur: Systemic corruption and procedural violations in procuring medical equipment and reagents committed by officials posted in the medical department have been found in the ongoing investigation into the 2023 case of financial misconduct in medical procurement, officials from Chhattisgarh’s economic offences wing (EOW) and anti-corruption bureau (ACB) have said.

Chhattisgarh’s EOW and ACB have arrested six people till now in connection with the 2023 case of financial misconduct in medical procurement (Representative Image)

The vigilance agency has so far arrested six people --- Shashank Chopra , Basant Kumar Kaushik, Kisraudra Rautia, Dr Anil Parsai, Kamkalkant Patanvaar and Deepak Bandhe --- who are currently in judicial remand.

A chargesheet was filed by EOW in Raipur court on April 25 highlighting serious lapses by the directorate of health services (DHS) and the Chhattisgarh medical services corporation limited (CGMSCL) led to financial losses of around ₹500 crore to the state exchequer.

The EOW investigation revealed that tender committee meetings lacked proper collective deliberation and documentation. “Neither were all members’ signatures obtained, nor was the process transparent,” the chargesheet said.

Instead, accused officials conducted a “tabletop exercise,” bypassing procedural norms and concealing critical information from the committee.

The findings also exposed that purchase orders worth ₹314.81 crore were issued by CGMSCL on June 2, 2023, without an approved budget or administrative permissions and procurement was based solely on an anticipatory budget approval, bypassing financial prudence.

The EOW questioned DHS for ignoring essential infrastructure requirements like refrigerators for storing reagents at 2-8°C.

“Despite being aware of this shortfall, DHS directed CGMSCL to supply reagents to health centres, resulting in massive wastage as the reagents expired due to improper storage,” the chargesheet said.

“A major concern was the procurement of EDTA (Ethylenediaminetetraacetic acid) tubes at exorbitant rates. While such tubes cost ₹1.50– ₹8.50 per unit in the market, CGMSCL purchased them for ₹23.52 and ₹30.24 per unit, causing a loss of approximately ₹2 crore. Investigators found deliberate delays and procedural manipulations to benefit a private supplier, Mokshit Medicare Pvt. Ltd,” the chargesheet said.

The EOW cited instances where objections by committee members, such as Dr. Arvind Neral, regarding inflated rates were overruled by accused officials.

“Accused Kshirodra Rautia misled the technical committee and violated legal provisions to favour Mokshit Corporation,” the chargesheet added.

It was also found that key officials ignored essential steps like cancelling inappropriate orders or ensuring installation of supplied equipment.

“Devices were left locked, storage requirements were ignored, and millions worth of reagents expired unused, indicating a well-organised nexus between the supplier and officials,” the chargesheet said.

An FIR was filed on January 22 against the officials of the Chhattisgarh’s health department and four private firms.