In a major crackdown on alleged financial irregularities in Chhattisgarh's public health sector, the Enforcement Directorate (ED) conducted extensive search operations across Raipur and surrounding areas on July 30 and 31, 2025. The searches targeted 20 premises linked to businessman Shashank Chopda, his family, their business associates, and certain government officials in connection with a ₹550 crore medical equipment and reagent procurement scam.
Origin of the Investigation
The case is rooted in an FIR registered by the Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW) on January 22, 2025, which later led to a chargesheet in April 2025. The complaint focused on officials of the Chhattisgarh Medical Services Corporation Ltd (CGMSCL), the Directorate of Health Services (DHS), and four private companies—Mokshit Corporation (Durg), CB Corporation (Durg), Recorders and Medicare Systems (Panchkula, Haryana), and Shri Sharda Industries (Raipur).
According to the ACB/EOW, these entities were involved in widespread irregularities in procurement under the “Hamar Lab” scheme. The scheme was introduced in 2021 by the Public Health and Family Welfare Department to strengthen diagnostic infrastructure in district and community health centers. However, it is alleged that the scheme was exploited to siphon off public funds by procuring unnecessary medical equipment and reagents at inflated prices.
The Modus Operandi of the Scam
The scam allegedly involved a nexus between CGMSCL and DHS officials and private companies, who raised inflated purchase orders without proper budgeting or administrative clearance. One of the key firms implicated is Mokshit Corporation, where Shashank Chopda is a partner. The company is accused of securing fraudulent rate contracts and placing orders worth over ₹500 crore.
Among the most glaring examples of inflated pricing was the procurement of EDTA tubes, used in blood sample collection. These tubes were reportedly billed at ₹23.52 per unit, while other institutions purchased them for just ₹8.50. In another case, Complete Blood Count (CBC) machines were supplied at ₹17 lakh per unit, while the market price is approximately ₹5 lakh.
Investigators claim that large quantities of reagents, worth over ₹300 crore, were bought without any assessment of actual demand, allegedly to prevent expiry of stock and ensure further supply orders. Furthermore, Mokshit Corporation supplied closed-system diagnostic equipment that forced health centers to buy future reagents only from their company, effectively creating a monopoly.
Charges Against Shashank Chopda
Shashank Chopda is considered a central figure in the scam. The ED accuses him of colluding with state health officials to corner government contracts through illegal means. The Chhattisgarh High Court, in June 2025, denied him bail, citing the serious nature of economic offenses and their potential to damage the nation’s financial health.
While Chopda’s defense argued that he was simply a bidder and not directly involved in the decision-making, the court rejected this claim. It noted that Chopda was a direct beneficiary of the scam and stated that granting him bail would send the wrong signal and embolden corrupt practices.
Outcomes of the ED Raids
The ED’s raids over two days covered 20 locations, including residences and offices of the Chopda family, their companies, and linked government officials in Raipur, Durg, and nearby areas. Notably, earlier reports had indicated 18 locations, suggesting that the scope of the operation expanded by the second day.
Key outcomes from the searches include:
Seizure of assets worth more than ₹40 crore, comprising bank balances, fixed deposits, shares in demat accounts, and high-value vehicles.
Confiscation of incriminating documents and digital evidence, which are expected to shed more light on the money trail and the laundering process.
The searches were carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002. This section empowers the ED to conduct searches and seize property involved in money laundering cases.
Larger Implications for Chhattisgarh
This medical procurement scam is among a series of high-profile corruption cases currently under investigation in Chhattisgarh. Other ongoing probes include the ₹2,161 crore liquor scam and the Mahadev betting app scandal. However, the healthcare-related scam is particularly alarming due to its potential impact on public diagnostic services.
The Chhattisgarh High Court has emphasized that economic crimes such as this one erode public trust in governance and have long-term repercussions on institutional integrity. The ED's ongoing probe aims to follow the money trail to uncover the full network of individuals and entities involved and to ensure accountability.
As the investigation unfolds, more details are likely to emerge on how public funds meant for essential healthcare services were allegedly diverted for private gain. The outcome of this case could also set a precedent for how such economic offenses are tackled in India moving forward.
Disclaimer: This report is based on official releases and public sources. Allegations mentioned are part of ongoing investigations, and the individuals named are presumed innocent until proven guilty in a court of law.
