On Wednesday, the Enforcement Directorate (ED) carried out searches across several locations in Chhattisgarh as part of a money laundering investigation into alleged irregularities in the procurement of medical supplies worth over ₹500 crore.
According to officials, the searches were conducted at premises linked to government officials, medical suppliers, agents, and middlemen in Raipur, Durg, and nearby areas.
The investigation is being pursued under the Prevention of Money Laundering Act (PMLA) and is based on a chargesheet filed in April 2025 by the state Anti-Corruption Bureau and Economic Offences Wing (ACB/EOW). The chargesheet names six individuals and attributes a loss of ₹550 crore to the state exchequer due to alleged irregularities in the purchase of medical equipment and reagent chemicals in 2023.
The ACB/EOW had earlier, on 22 January 2025, registered a case against officials of the Chhattisgarh Medical Services Corporation Ltd (CGMSCL) and the Directorate of Health Services, along with four private firms, Mokshit Corporation and CB Corporation (both based in Durg), Records and Medicare System HSIIDC (Panchkula, Haryana), and Shri Sharda Industries (Raipur).
According to the chargesheet, CGMSCL had made large-scale purchases between January 2022 and October 2023 in collusion with Mokshit Corporation and a related shell company, without verifying the actual requirement or availability of these items at public health centres. The procurement process allegedly violated standard procedures and resulted in significant financial loss.
What Happened?
The CGMSCL is the state agency responsible for the centralised procurement of medicines, diagnostic equipment, and related medical supplies for government health facilities in Chhattisgarh. The agency has come under scrutiny for procedural lapses, including over-invoicing, absence of need-based assessment, and non-transparent vendor selection.
A forensic audit conducted as part of the investigation reportedly found widespread irregularities in procurement orders, with items purchased at inflated prices and in excess of actual demand. In several cases, medical supplies were allegedly procured without budgetary approval or storage infrastructure, leading to wastage and financial mismanagement.
The ED investigation is ongoing. No official statement has yet been issued by the agency regarding the outcome of the searches.
(With inputs from PTI)
