ED Raids in Chhattisgarh Over Rs 500 Crore Medical Scam

Raipur, Jul 30 (PTI) The Enforcement Directorate initiated searches across various locations in Chhattisgarh on Wednesday as part of a money laundering investigation linked to an alleged medical supply scam exceeding Rs 500 crore, official sources disclosed.

Locations associated with several government officials, medical suppliers, agents, and "middlemen" are being targeted in Raipur, Durg, and nearby areas, according to the sources.

The ED's investigation falls under the Prevention of Money Laundering Act (PMLA) and is connected to a chargesheet filed by the Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW) in April. The chargesheet accused six individuals of fraudulent activities in the procurement of medical equipment and reagent chemicals in 2023, resulting in a loss of Rs 550 crore to the state government.

On January 22, the ACB/EOW filed a case against officials from the state-operated Chhattisgarh Medical Services Corporation Ltd (CGMSCL) in Raipur, the Directorate of Health Services, and four companies: Mokshit Corporation (Durg), CB Corporation (Durg), Records and Medicare System HSIIDC (Panchkula, Haryana), and Shri Sharda Industries (Raipur), among others.

The allegations claim the scam involved purchasing reagents and equipment without assessing the necessity or availability of these items in healthcare facilities. CGMSCL reportedly made purchases worth billions of rupees from January 2022 to October 31, 2023, allegedly in collaboration with Mokshit Corporation and its shell company, according to the ACB/EOW.