ACB files supplementary chargesheet in ₹550 crore CGMSC medical scam

Anti-Corruption Bureau names four more individuals in the ongoing investigation into inflated medical equipment rates and tender rigging in Chhattisgarh.

RAIPUR: The Chhattisgarh Anti-Corruption Bureau (ACB) on Friday intensified its crackdown on the multi-crore Chhattisgarh Medical Services Corporation (CGMSC) scam by filing a supplementary chargesheet against four key individuals. The investigation into the alleged ₹550 crore fraud involves high-level corruption in the procurement of medical reagents and equipment under the state’s ‘Hamar Lab’ scheme.

The chargesheet names Abhishek Kaushal, Director of Recorders & Medicare Systems; Rakesh Jain, Proprietor of Shri Sharda Industries; liaison agent Prince Jain; and Kunjal Sharma, Marketing Head of Diasys India. This development takes the total number of accused against whom chargesheets have been filed to ten.

Cartelization of medical tenders

Investigations conducted by the ACB reveal that three major firms—Mokshit Corporation, Recorders & Medicare Systems, and Shri Sharda Industries—formed a sophisticated syndicate to manipulate the tendering process. By submitting matching product specifications and rates in a coordinated pattern, these companies effectively stifled competition.

Official sources indicated that the firms submitted forged documents to meet eligibility criteria. The syndicate ensured that Mokshit Corporation remained the lowest bidder while other participating firms provided cover bids to validate the process artificially.

Inflated rates bleed exchequer

A significant portion of the ₹550 crore loss to the state exchequer is attributed to the deliberate inflation of Maximum Retail Prices (MRP). Kunjal Sharma of Diasys India is accused of conspiring to submit reagent and consumable prices that were several times higher than the actual market rates.

According to officials, these inflated price lists were approved by CGMSC authorities without proper vetting. This allowed the firms to secure contracts at exorbitant rates, leading to massive financial irregularities in the procurement of essential medical kits.

Massive orders within weeks

The Enforcement Directorate (ED) and Economic Offences Wing (EOW) have previously noted the suspicious speed of these transactions. Documents suggest that CGMSC officials issued orders worth approximately ₹750 crore to Mokshit Corporation within a span of just 27 days.

Notably, these procurements were pushed through despite a lack of immediate demand for the medical equipment. Sources suggested that the specifications in the tender documents were tailored specifically to favor the chosen firms, ensuring that other eligible suppliers were disqualified.

Background of the probe

The massive scam came to light in December 2024, following a formal complaint by former Home Minister Nankiram Kanwar. Kanwar had approached the Prime Minister’s Office and central agencies, including the CBI and ED, alleging systematic looting of public funds within the CGMSC.

Acting on these complaints, the Union Government directed the EOW to initiate a probe. This led to the registration of a First Information Report (FIR) against five individuals, which has since expanded into a wider investigation involving several bureaucrats and businessmen.

Mastermind in federal custody

The investigation gained significant momentum following the arrest of Shashank Chopra, the promoter of Mokshit Corporation, who is considered the mastermind behind the operation. During his interrogation by the ED, Chopra reportedly named several business associates and officials who provided him with administrative protection.

The officials currently under scrutiny include Dr. Anil Parsai, Deepak Kumar Bandhe, Basant Kumar Kaushik, Kamalkant Patanwar, and Khirod Rautia. These individuals are alleged to have facilitated the scam by bypassing standard procurement protocols.

Impact on healthcare sector

The scam has sparked a massive political row in Chhattisgarh, raising concerns over the integrity of public healthcare procurement. While the ‘Hamar Lab’ scheme was intended to provide affordable diagnostic services to the public, the siphoning of funds has severely impacted the scheme's credibility.

Health sector experts suggest that the ₹550 crore loss represents a missed opportunity to upgrade state-run medical facilities. Public interest groups have called for a complete audit of all medical contracts signed during the period in question.

Future course of action

The ACB has confirmed that the investigation into the CGMSC scam remains open. Further supplementary chargesheets are expected as agencies verify the trail of the misappropriated funds and the involvement of other shell companies used for money laundering.