On 30th July, the Enforcement Directorate (ED) carried out raids at 18 locations around Chhattisgarh in relation to a medical supply scam worth over ₹550 (650 per some reports) crore.
Senior officials from the Directorate of Health Services (DHS) and Chhattisgarh Medical Services Corporation Limited (CGMSCL) were involved in the money laundering scam, along with Mokshit Corporation which transpired during the Congress government of Chief Minister Bhupesh Baghel.
VIDEO | Durg: ED raids three residential complexes and the office of Mokshith Corporation in connection with the Chhattisgarh Medical Services Corporation Ltd scam case.
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Apart from a few “middlemen,” the action happened on sites connected to certain government officials, medical suppliers and agents in Raipur, Durg, Bhilai and the neighbouring regions.
The team also searched the residence of Kamalkant Patanwar, former deputy manager (equipment) of CGMSCL who is lodged in jail. The fraud entailed buying equipment and reagents without verifying their availability or necessity in state-run medical facilities.
The Enforcement Directorate acquired documents pertaining to Mokshit Corporation from the Economic Offences Wing (EOW) which uncovered evidence of money laundering after which the action was initiated.
The background of the scam
According to Chhattisgarh Anti Corruption Bureau and Economic Offences Wing, the CGMSCL conspired with Mokshit Corporation and its shell firm to make transactions of billions of rupees between January 2022 and 31st October 2023. An 18,000-page chargesheet against six individuals submitted in April is the basis for the ED investigation under the Prevention of Money Laundering Act (PMLA).
The chargesheet accused them of purchasing medical equipment and reagent chemicals in a dubious manner, resulting in a loss of ₹550 crore for the state exchequer. EOW-ACB also executed a joint raid in this matter, six months prior.
On 22nd January, the ACB/EOW launched a complaint against representatives of the Directorate of Health Services department and the state-run Chhattisgarh Medical Services Corporation Ltd (CGMSCL) in Raipur. Four companies were also booked: Records and Medicare System HSIIDC (Panchkula, Haryana), Mokshit Corporation (Durg), CB Corporation (Durg) and Shri Sharda Industries (Raipur).
Shashank Chopda, director of Mokshit Corporation, Basant Kumar Kaushik, Chhirod Rautia, Kamalkant Patanwar, Dr. Anil Parsai and Deepak Kumar Bandhe were named in the chargesheet. They were working with the CGMSCL at the time.
An ACB/EOW official conveyed, “Kaushik was the in-charge general manager (equipment) and deputy manager (purchase and operations) of CGMSCL. Rautia and Bandhe were biomedical engineers. Patanwar was then deputy manager (equipment) and Parsai was then deputy director (stores).” According to the official, Chopda was taken into custody on 29th January and the others were detained in March.
The probe agency stated that in one case, it was discovered that the EDTA tube used to collect blood samples was bought from Mokshit Corporation for ₹2,352 per piece, whereas other institutions were able to buy the same material for a maximum of ₹8.50. According to the ACB/EOW, Mokshit Corporation gave the CBC machine which is offered on the open market for ₹5 lakh to CGMSC for ₹17 lakh.
The purchase process which takes several months was completed in just 26 days. The scam was also raised in the state assembly. The purpose of the current raids was to find proof of connections between public officials and private organisations in the state’s healthcare procurement system, financial irregularities and deceptive sourcing methods.