The ED has registered a case and begun investigating financial irregularities of nearly ₹100 crore in the procurement and supply of medicines and medical equipment to government hospitals across Uttar Pradesh.
Former Congress MLA Mukesh Srivastava has been named as the principal accused in FIRs lodged in three districts. The alleged irregularities date to 2013 and 2014. The investigation covers government hospitals in Balrampur, Shravasti, Gonda and Bahraich districts, with the agency examining procurement contracts, supply orders and financial transactions linked to the case.
ED Seeks Seven Years of Procurement Records
As part of the investigation, the ED has sought records spanning seven financial years, from 2019-20 to 2025-26, from the managing director of the Uttar Pradesh Medical Supplies Corporation Limited. The agency has requested documents concerning procurement and supply contracts involving companies allegedly linked to Srivastava and his associates.
The ED is scrutinising tender and procurement records, supply orders, payments, bank guarantees and financial transactions involving nine companies allegedly connected to the former MLA’s family members, relatives and associates.
The agency has also sought details concerning allegedly substandard supplies, funds released to hospitals, utilisation certificates and medical reimbursement records. The requisition for the documents has been marked as “most urgent”.
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Companies Allegedly Secured Contracts Worth Over ₹18 Crore
The ED probe stems from a vigilance establishment investigation that led to Srivastava’s arrest. Investigators allege that companies linked to him secured contracts worth more than ₹18 crore for medicines, medical equipment, furniture and maintenance work in three districts.
According to the allegations under investigation, forged documents, shell entities and procedural violations were used to obtain the contracts. Investigators are also examining claims that funds earmarked for medicines, equipment and hospital maintenance were released against incomplete or non-existent work and supported by fabricated bills.
Several former health department officials, including retired chief medical officers and engineers, have also come under scrutiny. The allegations being examined include tender irregularities, unauthorised exemptions and misuse of the Government e-Marketplace portal.
ED Examines Assets and Possible Links to Earlier Scam
Investigators are also scrutinising Srivastava’s assets, including hotels, farmhouses and land holdings, to determine whether they are disproportionate to his known sources of income.
The ED is further examining whether elements of the alleged modus operandi bear similarities to aspects of the 2011 National Rural Health Mission scam.
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