CBI probes Rs 1.14 cr embezzlement from patient welfare grant at PGI

A major scam involving misappropriation of over Rs 1.14 crore from patient welfare grant at PGIMER, Chandigarh, has resurfaced following an RTI application filed by Ashwani Kumar Munjal, president of the Joint Action Committee of Contractual Workers’ Unions. The funds, intended for the treatment of poor and critically ill patients, were siphoned off by using the names of deceased patients, forged documents, and fabricated bills.

The matter, now under CBI investigation, is one of the most serious financial irregularities to hit the prestigious medical institute.

The scam, which had been lying dormant for nearly three years, came back into public view when Munjal filed an RTI request seeking the report of the inquiry conducted into financial irregularities in the Private Grant Cell. Initially, the Central Public Information Officer (CPIO) of PGIMER’s Vigilance Cell refused to share the report, citing reasons that were later deemed frivolous. The refusal contradicted an earlier CIC judgment from January 7, 2008, which had settled the matter of disclosure under the RTI Act.

Following the denial, a first appeal was filed on May 24 with the Chief Vigilance Officer of PGIMER, who, via an order on June 16, directed the release of the report. On July 1 at 4 pm, a detailed 12-page inquiry report authored by Prof Arun Kumar Aggarwal was finally shared with the appellant.

The scam first came to light in October 2022 when irregularities were uncovered in grant disbursements meant for critically ill and poor patients. However, despite the gravity of the findings, PGIMER officials delayed forming a probe committee by over three months. Even after its constitution, the committee held its first meeting eight months later in October 2023, raising doubts about institutional intent and accountability.

Shocking disclosures

The report lays bare shocking details. Rs 27.66 lakh was fraudulently withdrawn using the names of three patients who were already deceased. Prescriptions were forged, and supply orders were issued without doctor’s approval. In one instance, over Rs 11 lakh was sanctioned for a patient who had passed away weeks earlier. Another Rs 19 lakh was misappropriated by showing PGIMER staff and their associates as dependent family members of patients, with all related files and software records subsequently going missing—pointing to deliberate tampering and a larger conspiracy.

Additionally, the inquiry uncovered that Rs 50.11 lakh was paid to vendors for medicines never prescribed, and patients never visited PGIMER for treatment. Utilisation certificates and bills were sent to funding agencies without any verification. Moreover, Rs 6.96 lakh was paid against manipulated bills, and Rs 62,328 was disbursed twice for the same treatment using two different patient files — one of whom was already dead. Original files in 37 cases were found missing, and no complaints were ever filed regarding their disappearance.

The irregularities were further substantiated by an audit conducted by the Central Vigilance Cell, which confirmed that the disbursements had occurred despite the absence of any legitimate documentation in several cases. The audit pointed out that financial assistance was provided even after the death of patients, and in some cases, no hospital treatment records existed at all.

The findings have intensified demands for a high-level, impartial inquiry into the matter. Alarmingly, the report points out that several of the accused continued to work within PGIMER during the investigation, and one officer was even allowed to retire without facing consequences. The involvement of contractual staff in handling crores of rupees is also highlighted as part of a possible wider network of collusion.

The inquiry committee, constituted after a delay of over three months, held its first meeting only after eight months, raising suspicions of deliberate inaction or protection of senior officials.

Despite the evidence, the committee fell short of directly naming higher-ranking officers, instead maintaining a conspicuous silence on their role. However, the Joint Action Committee, which has closely monitored the case, insists that the CBI must go beyond vendors and contract staff to unearth the involvement of those in positions of power.

While PGIMER has handed over the matter to the CBI, the Rs 1.14 crore figure is likely only a partial estimate. With multiple files and bills missing between September 2019 and October 2021, the total financial damage could be much higher. The spotlight is now on the CBI to uncover the truth and ensure accountability at every level.

Chandigarh