Raipur | The Directorate of Enforcement (ED), Raipur Zonal Office, has intensified its probe into an alleged medical procurement scam in Chhattisgarh by arresting a partner linked to Mokshit Corporation under the Prevention of Money Laundering Act (PMLA), 2002. The action relates to suspected irregularities in the procurement of medical equipment and reagents for public health institutions in the State.
According to the ED, the arrest was made on January 14, 2026. The accused was produced before the Special Court (PMLA), Raipur, on January 15, following which the court granted ED custody until January 19, 2026, to enable further investigation into the alleged laundering of funds.
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Probe triggered by ACB/EOW FIR
The money laundering investigation was initiated on the basis of an FIR and charge sheet filed by the Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW), Raipur. The FIR pertains to alleged offences involving Mokshit Corporation and officials associated with the Chhattisgarh Medical Services Corporation Limited (CGMSCL) and the Directorate of Health Services (DHS).
As per the allegations, tender processes for the procurement of medical equipment and reagents were manipulated in collusion with officials of the procurement and health departments. Investigators allege that artificial demand was created and supplies were made at highly inflated prices, resulting in substantial loss to the State exchequer and corresponding unlawful gains to private entities.
Creation and layering of proceeds of crime
The ED said its investigation revealed that proceeds of crime were generated through the commission of scheduled offences, primarily by supplying medical equipment and reagents to CGMSCL at exorbitant rates after manipulating tender conditions.
The agency stated that the accused and associates subsequently laundered these funds through a layered structure involving the incorporation of multiple firms and business entities. These entities allegedly entered into bogus service agreements for training and maintenance services, which lacked any genuine commercial basis and were used as conduits to route illicit funds.
According to the ED, large amounts were eventually withdrawn in cash after multiple layers of transactions. The cash was allegedly used for illegal gratification and acquisition of assets, with the objective of concealing the true origin and ownership of the proceeds of crime.
Earlier searches and seizures
Prior to the arrest, the ED had carried out search and seizure operations under Section 17 of the PMLA at multiple locations linked to the accused and associates. During these operations, assets valued at more than ₹43 crore were seized or frozen.
The seized assets include bank balances, fixed deposits, shares and vehicles. In addition, several incriminating documents and digital devices were recovered. The ED said examination of the seized material revealed evidence pointing to diversion, layering and concealment of funds derived from the alleged offences.
Implications for public procurement
Officials familiar with the investigation said the case underlines systemic vulnerabilities in public procurement mechanisms, particularly in the health sector where large-scale purchases are routed through centralised agencies. If the allegations are established, the manipulation of tenders and price inflation would have not only caused financial loss to the State but also affected the delivery of essential healthcare services.
The investigation is also focusing on the role of intermediaries and shell entities that allegedly facilitated the laundering of funds generated from public procurement contracts.
Investigation continues
The ED said further investigation is under way. This includes tracing the complete money trail, identifying additional individuals and entities involved in the alleged conspiracy, and locating further assets linked to the proceeds of crime.
The agency is coordinating with other investigating bodies to examine the broader dimensions of the alleged scam and to ascertain whether similar practices were adopted in other procurement contracts.
The case is being viewed as part of a wider enforcement drive against alleged corruption and money laundering in public procurement, especially in sectors involving essential public services such as healthcare.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
