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Uncovered Systematic Corruption in a ₹500 Crore Medical Deal: Chhattisgarh Vigilance Bureau Highlights Alleged Malpractices

Health Services Directorate and Chhattisgarh Medical Services Corporation Limited face severe criticism as a chargesheet, detailed with crucial oversights, was officially submitted to Raipur court on April 25 by the Economic Offences Wing.

World's Gone Mad: A Wicked takesover of Chhattisgarh's Health Services in 2023

Uncovered Systematic Corruption in a ₹500 Crore Medical Deal: Chhattisgarh Vigilance Bureau Highlights Alleged Malpractices

Raipur: A desperate game of thrones ensued in Chhattisgarh's medical department, with allegations of systemic corruption and callous disregard for procedural norms unfolding amidst the ongoing investigation into financial misconduct. The stink of malfeasance in the 2023 case of medical procurement fraud has left officials from the Economic Offences Wing (EOW) and the Anti-Corruption Bureau (ACB) nothing short of aghast.

The twisted tale began with Shashank Chopra, Basant Kumar Kaushik, Kisraudra Rautia, Dr. Anil Parsai, Kamkalkant Patanvaar, and Deepak Bandhe, accused of orchestrating this corrupt empire. Currently serving time in the dark and dreary corridors of judgement, these malefactors are suspected of placing the state's coffers in grave peril.

A chargesheet, filed by EOW in the Raipur court on April 25, paints a chilling picture of an intended financial devastation, with the Directorate of Health Services (DHS) and the Chhattisgarh Medical Services Corporation Limited (CGMSCL) running rampant with reckless abandon. The financial sting of their actions promises to leave the state exchequer bereft of over ₹500 crore.

The EOW's relentless pursuit of truth unearthed a series of misdeeds, exposing the systematic corruption that pervaded the medical procurement process. Meetings of the tender committee, the governing body responsible for the procurement of medical equipment and supplies, were anything but transparent. The chargesheet went on to highlight the lack of proper collective deliberation, improper documentation, and opaque decision-making that characterized these gatherings. To make matters worse, signatures of every member present were nowhere to be found, indicating the clandestine nature of the entire affair.

In a bid to evade scrutiny, the accused officials resorted to the cynical practice of conducting a "tabletop exercise," which brazenly circumvented the established procurement process. These secret maneuvers undoubtedly allowed the officials to withhold crucial information from the committee, further perpetuating the cycle of fraud.

Their deceit reached new heights when the CGMSCL erroneously issued purchase orders worth a staggering ₹314.81 crore in June 2023 - without an approved budget or administrative permissions and on the basis of anticipatory budget approvals. This blatant disregard for financial prudence has left taxpayers in a state of disbelief and shock.

The EOW's investigation also spotlighted the issue of failing to meet storage requirements for reagents, which needed to be stored at 2-8°C. Despite being fully aware of the shortcomings, the DHS deemed it appropriate to supply reagents to health centers, leading to significant wastage as the commodities expired due to inadequate storage conditions.

One of the most egregious acts uncovered by the EOW involves the procurement of EDTA (Ethylenediaminetetraacetic acid) tubes at criminally inflated prices. In an ironic twist, tubes that sell for anywhere between ₹1.50 to ₹8.50 in the market were purchased at the astronomical rates of ₹23.52 and ₹30.24 by the CGMSCL - a mind-boggling waste of almost ₹2 crore.

Investigators found compelling evidence of deliberate delays, manipulations, and behind-the-scenes shenanigans intended to favor the private supplier, Mokshit Medicare Pvt. Ltd - a revelation that casts a dark shadow over the integrity of the accused officials.

Furthermore, objections raised by committee members - such as Dr. Arvind Neral, regarding inflated rates - were callously disregarded by the accused officials. The chargesheet implicates Kshirodra Rautia for misleading the technical committee and violating legal provisions, all in order to curry favor with Mokshit Corporation.

The chilling findings also reveal a series of missed opportunities for corrective action by key officials. Equipment left untouched, storage requirements ignored, and millions of rupees wasted on reagents that expired before they could be used - a glaring testament to the deep-rooted nexus between the suppliers and officials involved in this wretched scheme.

Coming full circle, an FIR was filed against the officials of the Chhattisgarh's health department and four private firms on January 22, 2025. As the dust settles, the people of Chhattisgarh are left to contemplate the enormity of the deceit they have endured, and how best to rebuild and restore faith in the system that has so clearly failed them.

[[1] Adapted Enrichment Data: https://www.newindianexpress.com/states/chhattisgarh/2023/jan/22/chhattisgarh-medical-services-corporation-top-brass-arrested-by-acb-in-250-crore-procurement-scam-2318831.html]

  1. The corruption scandal in Chhattisgarh's health services, exposed in 2023, led to a series of allegations against key officials such as Shashank Chopra, Basant Kumar Kaushik, and others.
  2. The Economic Offences Wing (EOW) and the Anti-Corruption Bureau (ACB) are currently investigating this case, where officials are suspected of placing the state's financial infrastructure in grave danger.
  3. A chargesheet, filed by EOW in Raipur court, reveals a financial devastation aimed at the state exchequer, with the Directorate of Health Services (DHS) and Chhattisgarh Medical Services Corporation Limited (CGMSCL) accused of reckless actions promising to leave the state exchequer bereft of over ₹500 crore.
  4. The investigation uncovered consistent corruption in the medical procurement process, with meetings of the tender committee being non-transparent, improper documentation, and opaque decision-making.
  5. To evade scrutiny, accused officials resorted to conduction a 'tabletop exercise,' which bypassed the established procurement process, withholding crucial information from the committee.
  6. One of the most egregious acts uncovered by the EOW involves the procurement of EDTA tubes at criminally inflated prices, amounting to nearly ₹2 crore in wasted funds.
  7. The investigation also revealed evidence of deliberate delays, manipulations, and behind-the-scenes shenanigans by key officials to favor private suppliers such as Mokshit Medicare Pvt. Ltd, leading to a profound lack of faith in the system among the people of Chhattisgarh.
Health services directorate and Chhattisgarh medical services corporation face major accusations, as a court in Raipur received a chargesheet on April 25, outlining significant mistakes.

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