Raipur
The Chhattisgarh High Court has dismissed the anticipatory bail applications of four individuals implicated in a massive procurement scam linked to the Chhattisgarh Medical Services Corporation Limited (CGMSC). The scam, involving irregularities worth 411 crore rupees in the purchase of medical equipment and reagents, has drawn significant attention due to allegations of fraud, tender manipulation, and substantial financial losses to the state. The court’s ruling reflects the seriousness of the charges and the ongoing investigation by the Anti-Corruption Bureau and Economic Offences Wing (ACB-EOW).
In 2021, the Chhattisgarh health department, through CGMSC, launched an expedited procurement process for medical equipment and machines. Within a remarkably short span of 26-27 days, purchase orders totaling 411 crore rupees were issued. Investigations have revealed critical lapses: the need for the equipment was not adequately assessed, and no proper storage facilities were available. Despite these deficiencies, a large quantity of machines was acquired. Additionally, reagents were stored in health centers without arrangements for their maintenance.
A striking example of the alleged fraud is the procurement of EDTA tubes at 2352 rupees per unit, while the market rate for the same tubes was just 8.50 rupees. This discrepancy alone is estimated to have caused losses running into crores of rupees, highlighting the scale of mismanagement and potential corruption.
Legal Actions and Allegations
The ACB-EOW has filed FIRs against four companies—Mokshit Corporation, Records and Medicare System, Shri Sharda Industries, and CB Corporation—under charges of criminal conspiracy (IPC Section 120-B), criminal breach of trust (IPC Section 409), and violations of the Prevention of Corruption Act (Sections 13(2), 13(1)(a), and 7(c)). The investigation points to tender manipulation, with evidence suggesting that the four companies colluded to rig the bidding process. The similarity in their products’ names, packaging, and pricing has fueled suspicions of a coordinated effort to defraud the system.
Anticipatory Bail Pleas and Court Proceedings
Following the arrest of Mokshit Corporation’s director, Shashank Chopra, four other individuals—Avinesh Kumar, Rajesh Gupta, Abhishek Kaushal, and Neeraj Gupta—sought anticipatory bail. They claimed they were not named in the FIR and had no direct involvement in the tender process, identifying themselves as mere employees, promoters, or directors of the implicated firms.
The state government, represented by Deputy Advocate General Dr. Saurabh Pandey, opposed the pleas, arguing that the companies engaged in “pool tendering.” The prosecution highlighted that the reagents supplied by Records and Medicare Systems, Mokshit Corporation, and Shri Sharda Industries had identical names, packaging, and rates—an anomaly suggesting deliberate manipulation. Avinesh Kumar was specifically accused of preparing tender documents, while Shashank Chopra’s prior association with Records and Medicare Systems pointed to deeper connections between the firms.
Justice Sinha, presiding over the case, rejected the bail applications. The court emphasized that the investigation is still in its preliminary phase, several co-accused are already in custody, and there is prima facie evidence linking the four individuals to the 411 crore scam.
