A major financial probe has been launched at Lucknow’s King George’s Medical University (KGMU). A five-member committee is investigating a suspected ₹2 crore cancer medicine billing scam after a department's monthly drug expenditure inexplicably surged from ₹10 lakh to over ₹45 lakh.

Medicine Billing Scam: ₹2 Crore Irregularities Suspected After ₹45 Lakh Monthly Bill Surge at KGMU

The420.in Staff
4 Min Read

Lucknow. A major financial irregularity has surfaced at King George’s Medical University (KGMU), where early findings point to a suspected scam of nearly ₹2 crore involving the misuse and manipulation of expensive medicines meant for cancer patients.

Expenditure Surges and Internal Audit Triggers

The issue came to light after hospital authorities noticed an unusual spike in monthly medicine expenditure. Official records show that the department’s spending stood at around ₹10 lakh per month during October–November 2025. However, it sharply rose to nearly ₹40 lakh in February 2026 and crossed ₹45 lakh in March 2026, triggering immediate concern and an internal review.

A preliminary audit has indicated possible discrepancies in the Urology department, where records of high-cost injections and medicines appear to have been manipulated. Investigators suspect that certain drugs may have been repeatedly shown as administered to patients, despite medical guidelines suggesting that such injections are required only at long intervals.

Sources suggest that the injections under scrutiny cost between ₹8,000 and ₹10,000 per dose. While these medications are typically prescribed sparingly, billing records allegedly show multiple entries for the same patients within short intervals, raising doubts over actual usage versus documented consumption.

Protocol Deviations and Contractual Staff Removals

The investigation has also flagged procedural violations in treatment protocols. According to established medical guidelines, certain cancer-related medications can only be administered after formal patient admission and proper documentation. However, records under review reportedly show deviations from these mandatory procedures.

Following the discovery of irregularities, the administration has taken immediate action by removing three contractual employees posted at the medicine counter. These individuals have also been restricted from leaving Lucknow until the completion of the inquiry.

KGMU has constituted a five-member committee to conduct a detailed investigation into the matter. The panel has been tasked with examining medicine distribution records, billing systems, patient files, and stock registers to determine the extent of the alleged discrepancies.

Committee Inquiries and Punitive Administrative Directives

Hospital spokesperson Dr. KK Singh stated that preliminary findings have revealed certain irregularities, prompting the removal of the concerned staff. He added that it would be premature to draw conclusions at this stage, but strict action will be taken if wrongdoing is established after the inquiry.

The administration has indicated that punitive measures could include filing of FIRs, recovery of financial losses, and termination of services against those found guilty. Authorities are also reviewing the entire medicine distribution mechanism under government healthcare schemes to identify systemic gaps.

Health experts note that such cases often involve a complex mismatch between actual consumption and recorded usage, making detection difficult without thorough forensic audits. In many instances, manipulation occurs at the documentation level, where treatment entries are inflated or falsified.

Document Manipulations and Network Scrutiny

Investigators are also examining whether external individuals or an organised network could be involved in the alleged irregularities. The probe aims to determine whether the issue is limited to procedural lapses or part of a larger coordinated system of financial misuse.

The matter has prompted heightened vigilance within both the hospital administration and the state health department. Officials have intensified scrutiny of procurement and distribution processes to prevent similar incidents.

Authorities have reiterated that the final conclusions will depend on the findings of the inquiry committee. Until then, the case remains under active investigation, with further action likely once the report is submitted.

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