Enforcement Directorate Targets Durg and Raipur in Probe of Massive Medicine Procurement Fraud
RAIPUR (India CSR): In a dramatic escalation of a high-profile corruption case, the Enforcement Directorate (ED) launched raids across 18 locations in Chhattisgarh on July 30, 2025, targeting a Rs 660 crore medical supply scam linked to the state-run Chhattisgarh Medical Services Corporation Limited (CGMSCL). The operation, centered in Raipur, Durg, and Bhilai, focused on Mokshit Corporation, a key supplier accused of colluding with government officials to siphon off public funds through inflated procurement contracts. For the people of Chhattisgarh, where healthcare access in rural areas is already a challenge, this scam represents a betrayal of trust, diverting critical resources meant for life-saving medical supplies. This article delves into the details of the raids, the scam’s scale, and its broader implications for governance and public health in India, drawing on recent developments and official statements.
A Massive Crackdown: ED’s Sweeping Raids
On the morning of July 30, 2025, ED teams descended on 18 locations across Raipur, Durg, Bhilai, and Bilaspur, targeting premises linked to Mokshit Corporation, CGMSCL officials, and other implicated parties. The raids, conducted under the Prevention of Money Laundering Act (PMLA), followed a year-long investigation by the state’s Anti-Corruption Bureau and Economic Offences Wing (ACB/EOW), which had filed an 18,000-page chargesheet in April 2025. The chargesheet named 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, for causing a Rs 550–660 crore loss to the state exchequer.
The ED’s operation focused on Mokshit Corporation’s office in Ganjpara, Durg, and the residence of Kamalkant Patanwar, CGMSCL’s Technical General Manager, in Bhathagaon, Raipur. Over six ED officers, supported by EOW personnel, seized financial documents, procurement records, and digital evidence to uncover the money trail. A senior EOW official confirmed to The Statesman that the raids aimed to scrutinize evidence of large-scale irregularities in medical equipment and reagent purchases between January 2022 and October 2023.
The Scam Unveiled: A Betrayal of Public Health
The scam revolves around the procurement of medical supplies by CGMSCL, the state agency responsible for equipping Chhattisgarh’s government-run health centers. Between January 2022 and October 2023, CGMSCL made purchases worth billions of rupees, allegedly without assessing the actual needs or availability of supplies at health facilities. Mokshit Corporation, along with CB Corporation (Durg), Records and Medicare System HSIIDC (Panchkula, Haryana), and Shri Sharda Industries (Raipur), is accused of securing rate contracts through fraudulent means and supplying overpriced equipment and reagents.
A glaring example cited by the ACB/EOW illustrates the scam’s audacity: an EDTA tube for blood sample collection, typically priced at Rs 8.50 in the open market, was purchased from Mokshit Corporation at Rs 2,352 per unit. Similarly, CBC machines, available for Rs 5 lakh, were supplied to CGMSCL for Rs 17 lakh each. These inflated prices, facilitated by colluding officials, led to an estimated loss of Rs 550–660 crore, funds that could have bolstered healthcare infrastructure in Chhattisgarh’s underserved regions.
Political Firestorm: BJP Raises the Issue
The scam, which occurred during the previous Congress-led government, has sparked intense political debate. On July 29, 2025, BJP MLA Dharamlal Kaushik raised the issue in the Chhattisgarh Legislative Assembly, alleging a ₹660 crore fraud in medical supply contracts. Kaushik’s accusations, echoed by Deputy Chief Minister Arun Sao, pointed to systemic collusion between CGMSCL officials and private firms, particularly Mokshit Corporation. The BJP’s vocal stance has fueled public outrage, with social media posts on X highlighting the scam’s impact on rural healthcare, where patients often struggle to access basic diagnostics.
Congress leaders, including former Chief Minister Bhupesh Baghel, have countered by questioning the timing of the raids, suggesting they are politically motivated to tarnish the party’s image ahead of upcoming elections. The controversy underscores the challenge of addressing corruption without descending into partisan blame games, with the public demanding accountability over political point-scoring.
The Investigation: From ACB to ED
The investigation began on January 22, 2025, when the ACB/EOW registered a case against CGMSCL and Directorate of Health Services (DHS) officials and the four implicated firms. Shashank Chopda was arrested on January 29, followed by Kaushik, Rautia, Patanwar, Parsai, and Bandhe in March. The ACB/EOW’s April chargesheet detailed how officials manipulated tender processes, issuing purchase orders worth over ₹500 crore without verifying requirements. For instance, reagents and equipment were procured for health centers lacking the infrastructure to use them, leading to wastage and financial loss.
The ED’s involvement, triggered by the ACB/EOW findings, focuses on tracing the laundered proceeds under the PMLA. Raids on July 30 targeted not only Mokshit Corporation’s premises but also the homes of middlemen and suppliers in Raipur and Durg, aiming to uncover illicit transactions and shell company operations. A Jagran report noted that the ED also searched properties linked to Kamalkant Patanwar in Bilaspur, where he is currently detained.
The Human Toll: Healthcare in Crisis
The scam’s impact extends beyond financial loss, striking at the heart of Chhattisgarh’s healthcare system. The state, with a significant tribal population and Naxal-affected regions, relies heavily on government health centers for primary care. Funds misappropriated through inflated contracts could have equipped hospitals with life-saving equipment or ensured the availability of essential drugs. Posts on X reflect public frustration, with users decrying how rural patients, particularly in districts like Bastar and Dantewada, are left without adequate diagnostics due to such malpractices.
The case also raises questions about oversight in public procurement. CGMSCL’s failure to verify requirements before issuing contracts points to a lack of accountability, compounded by the involvement of senior officials like Kaushik (former General Manager) and Parsai (former Deputy Director, Stores). The ED’s ongoing analysis of seized documents, expected to culminate in a press briefing, may reveal further details about the scam’s beneficiaries and the extent of the money laundering network.
A Pattern of Corruption in Chhattisgarh
This medical supply scam is not an isolated incident in Chhattisgarh. In March 2024, the ED conducted raids in Raipur over a Rs 500–600 crore District Mineral Fund (DMF) scam, where contractors allegedly paid 25–40% commissions to officials and political executives. The DMF, funded by miners for community welfare, saw funds diverted through inflated contracts, mirroring the tactics used in the CGMSCL case. These recurring scandals highlight systemic issues in public fund management, prompting calls for stricter oversight and digital procurement systems to enhance transparency.
The involvement of firms like Mokshit Corporation, which operated a shell company to facilitate the scam, underscores the need for robust due diligence in vendor selection. The ACB/EOW’s findings suggest that Mokshit’s contracts were secured through forged records and insider collusion, a pattern seen in other states’ procurement frauds. Strengthening anti-corruption mechanisms, such as real-time audit systems and whistleblower protections, could deter such malpractices.
Legal and Political Ramifications
The ED’s raids mark a significant step toward accountability, but the road to justice is complex. The six named individuals face charges under the PMLA and the Prevention of Corruption Act, with potential penalties including up to seven years’ imprisonment and asset forfeiture. The seizure of documents and digital evidence will likely lead to further arrests, as the ED traces the flow of illicit funds. However, the politicization of the case risks delaying justice, with BJP and Congress leaders trading accusations over responsibility for the scam.
Chief Minister Vishnu Deo Sai has pledged a “zero-tolerance” approach to corruption, vowing to ensure that all culprits face strict punishment. The state government’s cooperation with the ED and EOW signals a commitment to cleaning up public procurement, but public trust remains fragile. The case’s outcome will test Chhattisgarh’s ability to address systemic corruption while prioritizing healthcare improvements for its citizens.
A Call for Reform and Accountability
The ₹660 crore medical supply scam is a stark reminder of the vulnerabilities in India’s public health procurement system. For Chhattisgarh’s residents, who depend on government hospitals for affordable care, the diversion of funds is a profound injustice. The ED’s raids, coupled with the ACB/EOW’s earlier actions, offer hope for accountability, but systemic reforms are essential to prevent future scams. These include mandatory pre-procurement audits, transparent tendering processes, and severe penalties for colluding officials and firms.
The case also underscores the need for stronger protections for whistleblowers and journalists who expose corruption, as seen in the tragic murder of Mukesh Chandrakar in a related Chhattisgarh scam. As the ED continues its probe, the nation watches, hoping for justice that not only punishes the guilty but also restores faith in governance. The people of Chhattisgarh deserve a healthcare system that prioritizes their well-being over profit, and this case could be a turning point in that fight.
(India CSR)
