Irregularities in CGMSCL medical supplies under former Bhupesh Baghel-led Congress government; EOW, ACB and ED intensify probe
Published on: January 20, 2025
By: BTNI
Location: Raipur, India
A major controversy has erupted in Chhattisgarh following revelations of large-scale financial irregularities in medical procurement carried out by the Chhattisgarh Medical Services Corporation Limited (CGMSCL). Investigation agencies estimate the value of the alleged scam to be more than ₹600 crore, making it one of the biggest healthcare-related scandals in the state.
The case pertains to the procurement of medical equipment, machines, chemicals, and other supplies meant for government hospitals across Chhattisgarh during the tenure of the previous Bhupesh Baghel-led Congress government. According to officials associated with the probe, procurement norms were allegedly bypassed, resulting in massive financial losses to the state exchequer.
Serious Allegations Against Private Firms
Investigations have revealed that Mokshit Corporation and several other private companies were allegedly granted undue benefits during the tendering process. Officials claim that supplies were shown to have been procured at prices several times higher than prevailing market rates. In many cases, questions have also been raised about the actual quality, necessity, and usability of the supplied medical items.
The agencies suspect a well-organized nexus involving officials and private suppliers, aimed at manipulating tenders and inflating bills, thereby siphoning off public funds earmarked for healthcare infrastructure and patient welfare.
EOW–ACB Action and Arrests
The case is being jointly investigated by the Economic Offences Wing (EOW) and the Anti-Corruption Bureau (ACB). Several accused have already been arrested and produced before a special court. After hearings, the court remanded them to judicial custody.
Officials involved in the probe confirmed that crucial documents related to tenders, bank transactions, and digital records are being thoroughly examined. Investigators believe that documentary and electronic evidence could lead to further arrests in the coming days.
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ED Joins Probe, Money Laundering Angle Emerges
The Enforcement Directorate (ED) has also stepped up action in the case, initiating an investigation under the Prevention of Money Laundering Act (PMLA). The central agency has conducted raids at multiple locations, freezing bank accounts and seizing movable and immovable assets worth several crores of rupees.
According to ED sources, there is strong suspicion that the proceeds of the alleged scam were laundered through multiple channels to conceal their origin. The agency is tracking financial trails to identify beneficiaries and the ultimate destination of the funds.
Impact on Public Healthcare System
Beyond financial irregularities, the scam has raised serious concerns about the state of public healthcare in Chhattisgarh. Experts point out that compromised procurement processes directly affect patient care, as substandard or unnecessary equipment can weaken hospital services and put lives at risk.
Several of the medical items procured under the questioned tenders are now under quality assessment, and their actual deployment in hospitals is being verified. Health sector analysts warn that such scams erode public trust and undermine efforts to strengthen healthcare delivery in rural and urban areas alike.
Government’s Stand
The current state government has taken a firm stance on the issue, stating that no individual involved in the misuse of public funds will be spared, regardless of their position or influence. Officials have assured that once investigations are complete, strict legal action will be initiated against all those found guilty.
More Revelations Expected
With EOW, ACB, and ED continuing their coordinated investigation, authorities anticipate further disclosures, additional arrests, and a clearer picture of the scale and structure of the alleged scam in the coming days.
