Bilaspur: Police in Chhattisgarh’s Bilaspur district have intensified their investigation into an alleged ₹3 million (₹30 lakh) medical reimbursement fraud involving the state’s education department. Nearly ten months after a departmental inquiry uncovered suspected irregularities, Kotwali Police registered a case against Bilha block cluster coordinator and teacher Sadhelal Patel on charges including cheating, forgery, and the use of fabricated documents. Patel was arrested but was later admitted to hospital after reportedly falling ill in police custody. Investigators are also examining the role of his wife and other alleged beneficiaries.
According to the preliminary investigation, Patel allegedly manipulated several genuine medical reimbursement claims by inflating their value through forged documentation. Officials claim that legitimate claims of approximately ₹77,000, ₹47,000, and ₹32,000 were allegedly altered to reflect amounts ranging between ₹400,000 and ₹700,000, enabling significantly higher reimbursements. Investigators also allege that a fraudulent medical reimbursement claim was processed in the name of a deceased teacher.
Authorities estimate that the total value of the suspected fraud across multiple transactions is around ₹3 million. Police are now investigating whether other officials, employees, or private individuals were involved and whether there was negligence or collusion at different stages of claim verification, approval, and payment processing.
The departmental inquiry further revealed that part of the allegedly misappropriated funds was transferred to bank accounts belonging to Patel’s wife, Rajkumari Patel, and other relatives. Investigators allege that forged seals and signatures were used in one teacher’s reimbursement claim, resulting in payments being routed to the accounts of Patel’s deceased brother-in-law, his wife, and other family members. Financial investigators are tracing banking records and transaction histories to reconstruct the money trail.
The inquiry report states that reimbursements of ₹33,123 and ₹40,947 had already been legitimately paid to the concerned employees. Despite this, investigators allege that forged documents were later prepared using the same claims to obtain duplicate payments. According to the findings, amounts of ₹433,123 and ₹240,947 were subsequently deposited into the bank accounts of one of Patel’s relatives and his wife, respectively.
Following the departmental investigation, Patel had already been suspended from his position as cluster coordinator. His wife, Rajkumari Patel, who served as the head teacher of a government school, was also suspended after investigators found evidence suggesting her alleged involvement in the case. Departmental officials said that after the inquiry report was completed, the District Education Officer was instructed to ensure the immediate registration of a criminal case, and all relevant documents were handed over to the police.
However, the FIR was registered only about ten months after the departmental complaint. During this period, police examined original records and supporting evidence before initiating criminal proceedings. Investigators also found that medical reimbursement claims dating back three to four years had allegedly been resubmitted in violation of applicable rules, resulting in additional payments from the government treasury. Police are now examining whether officials responsible for authorising those payments were complicit in the alleged fraud or failed to follow mandatory verification procedures.
After the FIR was registered, Patel was arrested by Kotwali Police. According to officials, he complained of dizziness shortly after being brought to the police station and was immediately shifted to the Chhattisgarh Institute of Medical Sciences (CIMS), where he remains under treatment. Police said detailed questioning will begin once doctors declare him medically fit. Meanwhile, investigators continue to examine bank accounts, departmental records, payment files, medical reimbursement documents, and other evidence through financial and forensic analysis to determine the complete flow of funds, identify additional beneficiaries, and establish the role of any other officials involved. Authorities have emphasized that the allegations remain subject to investigation and judicial scrutiny, and final culpability will be determined through due legal process.
