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₹280 Crore Fraud Unearthed in Ayushman Scheme: Massive Fake Claims by Government and Private Hospitals in Chhattisgarh Rejected

Digital audit by National Health Authority flags irregularities in treatment records; over 26,000 beneficiaries linked to unusually high hospitalization claims across multiple districts

Published on: February 21, 2026
By: BTNI
Location: Raipur/New Delhi, India

A major financial irregularity has surfaced under India’s flagship public health insurance programme, the Ayushman Bharat scheme, in Chhattisgarh. Following a detailed technical audit, the National Health Authority (NHA), headquartered in New Delhi, has rejected approximately ₹280 crore worth of suspicious claims submitted by both government and private hospitals across the state.

According to officials familiar with the investigation, nearly ₹200 crore of the rejected claims were submitted by government healthcare institutions, while around ₹80 crore were linked to private hospitals.

Nature of the Irregularities

The digital scrutiny revealed multiple patterns suggesting systematic misuse of the scheme. Hospitals allegedly:

  • Admitted patients under the pretext of severe illness despite minor conditions
  • Extended hospital stays unnecessarily for 4–5 days to inflate bills
  • Claimed high-value treatments and costly medical equipment usage without justification
  • Exaggerated disease severity in documentation
  • Uploaded incomplete or suspicious records on the Ayushman portal

In one of the most striking findings, hospitals reportedly submitted treatment claims for more than 7 lakh patient cases in the names of approximately 26,000 beneficiaries within a year — a volume considered statistically abnormal by auditors.

How the Fraud Was Detected

Under the Ayushman Bharat system, every treatment availed by a beneficiary must be uploaded to a centralized digital portal maintained by the National Health Authority. Each medical condition has predefined treatment protocols and mandatory documentation requirements.

The platform uses automated tracking mechanisms that flag inconsistencies between disease severity, treatment procedures, and uploaded documents. Once discrepancies are detected, cases are subjected to digital audits and verification processes.

It was during such advanced technical analysis that the large-scale irregularities in Chhattisgarh were identified.

Districts Under Scanner

Preliminary findings indicate that irregularities were not limited to a few facilities but spread across multiple districts, including:

  • Raipur
  • Bilaspur
  • Durg
  • Surguja
  • Dhamtari
  • Mahasamund
  • Balodabazar
  • Bastar

Sources suggest that detailed scrutiny of claims from Primary Health Centres (PHCs), Community Health Centres (CHCs), and higher-level hospitals is ongoing. Authorities are reportedly preparing for disciplinary and possibly criminal action against responsible doctors and officials.

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Medical Colleges Also Under Lens

The investigation has also flagged suspicious billing practices in certain government medical colleges, where expensive procedures and equipment were allegedly shown without adequate medical necessity to inflate reimbursement amounts.

In Dhamtari district alone, one doctor has been linked to more than ₹1.40 crore worth of questionable claims within a single year, according to preliminary findings.

Concerns Over Impact on Patients

Experts warn that misuse of a welfare scheme designed for economically vulnerable citizens creates a double burden — financial losses to the public exchequer and denial of timely care to genuine beneficiaries.

The development raises an important policy question: whether authorities will limit action to claim rejection and recovery, or proceed with criminal prosecution under fraud and corruption laws.

Technology as a Safeguard — But Not Enough

The exposure of the alleged fraud highlights the effectiveness of digital monitoring systems in large government programmes. However, it also underscores the need for strong on-ground supervision, ethical medical practices, and accountability mechanisms to prevent systemic abuse.

With investigations continuing, the case could become one of the most significant healthcare fraud probes in the state’s recent history.

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