ED Raids Uncover Rs 550 Crore Chhattisgarh Medical Supply Scam

The Enforcement Directorate (ED) launched extensive searches across Raipur, Durg, and nearby areas in Chhattisgarh on Wednesday, targeting a Rs 550 crore money laundering case linked to irregularities in medical supply purchases. The raids, conducted under the Prevention of Money Laundering Act (PMLA), focus on government officials, medical suppliers, middlemen, and firms accused of defrauding the state exchequer through inflated and unnecessary procurements.

The investigation stems from a chargesheet filed on April 25, 2025, by Chhattisgarh’s Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW), which exposed systemic corruption in the Chhattisgarh Medical Services Corporation Ltd (CGMSCL) and the Directorate of Health Services.

The 18,000-page chargesheet names six individuals, including Shashank Chopda, director of Mokshit Corporation, and CGMSCL officials Basant Kumar Kaushik, Chhirod Rautia, Kamalkant Patanwar, Dr. Anil Parsai, and Deepak Kumar Bandhe. Four firms—Mokshit Corporation (Durg), CB Corporation (Durg), Records and Medicare System HSIIDC (Panchkula, Haryana), and Shri Sharda Industries (Raipur)—are also implicated.

The ACB/EOW alleges that between January 2022 and October 2023, CGMSCL issued purchase orders worth Rs 314.81 crore without approved budgets or administrative permissions, bypassing financial protocols. A notable example is the procurement of EDTA tubes at Rs 23.52–30.24 per unit, against a market price of Rs 1.50–8.50, causing a Rs 2 crore loss.

The chargesheet highlights deliberate manipulations, such as overruling objections from committee members like Dr. Arvind Neral, to favor Mokshit Corporation. Tender processes lacked transparency, with “tabletop exercises” replacing proper deliberation, and critical information was concealed to benefit private suppliers.

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The ED’s raids target residences and offices linked to the accused, focusing on uncovering financial trails and assets acquired through illicit gains. Sources indicate the agency is probing shell companies, including one tied to Mokshit Corporation, used to siphon funds. The scam involved procuring reagents and equipment without assessing health centers’ needs, leading to billions in wasteful expenditure. The ED has previously attached assets worth Rs 3.01 crore in a similar medical supply scam at Patna Medical College and Hospital, suggesting a pattern of procurement fraud in public health systems.

Chhattisgarh’s medical scam follows other high-profile ED probes in the state, including a Rs 2,161 crore liquor scam involving senior bureaucrats and politicians, and a coal levy case generating over Rs 500 crore in bribes. The state’s political landscape is tense, with the Congress alleging that ED actions are politically motivated by the BJP-led central government, especially ahead of elections. Former Chief Minister Bhupesh Baghel has dismissed similar allegations, claiming increased state revenue and clean audits.

As the ED intensifies its investigation, the case underscores systemic issues in public procurement, raising questions about oversight and accountability in Chhattisgarh’s health sector. Further searches and interrogations are expected as the agency traces the flow of laundered funds.

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