Raipur, Jul 30 (PTI) The Enforcement Directorate on Wednesday launched searches at multiple locations in Chhattisgarh as part of a money laundering investigation into an over Rs 500 crore worth medical supply "scam", official sources said.

Premises linked to some government officials, medical suppliers and agents apart from some "middlemen" are being raided in Raipur, Durg and adjoining places, they said.

The ED probe under the Prevention of Money Laundering Act (PMLA) stems from an Anti-Corruption Bureau/Economic Offences Wing (ACB/EOW) chargesheet filed in April against six persons for alleged irregularities in purchase of medical equipment and reagent chemicals in 2023 that caused a loss of Rs 550 crore to the state exchequer.

The ACB/EOW, on January 22, lodged a case against officials of the state-run Chhattisgarh Medical Services Corporation Ltd (CGMSCL) in Raipur and Directorate of Health Services department as well as four firms namely Mokshit Corporation (Durg), CB Corporation (Durg), Records and Medicare System HSIIDC (Panchkula, Haryana) and Shri Sharda Industries (Raipur), as well as others.

It was alleged that the scam involves purchase of reagents and equipment without checking requirement/availability of these items in health centres. The CGMSCL has made purchases worth billions of rupees between January 2022 to October 31, 2023 in collusion with Mokshit Corporation and its shell company, the ACB/EOW had said. PTI NES DV DV

Money laundering probe under PMLA targets alleged medical procurement fraud, prompting coordinated searches and asset scrutiny. A money laundering investigation under the PMLA targets alleged procurement irregularities in medical equipment and reagents, prompting searches at premises linked to officials, suppliers, agents and intermediaries. The probe stems from a chargesheet alleging purchases without needs assessment and collusion with a supplier and its purported shell company, triggering asset-tracing and search operations to examine financial flows and transactional links in the procurement chain.