Multi-Crore Fake Ayushman Cards Scam Busted At PGI: Key Details

Alankar Mishra

Author

Updated: 16-04-2025 at 12:47 PM

Authorities have debunked a huge scam which involves counterfeit Ayushman Bharat cards and misuse of funds earmarked for indigent patients at Postgraduate Institute Of Medical Education And Research (PGI), Chandigarh. This fraud which began in 2021 is estimated to be more than 5 crores and has exploited the weakness in the Ayushman Bharat scheme and the welfare schemes designed for impoverished patients.

How The Scam Was Exposed?

The scam was discovered when a PGI security officer arrested a person with fake doctor’s stamps and indent books at AMRIT pharmacy. The man tried to run after a security guard stopped him, but he was soon restrained. During the investigation, the stamps were used to produce fake Ayushman cards which enabled people who were not eligible to receive free medical treatment intended for the poorer section of society.

Major Findings Of The Scam

The investigation brought to light some horrifying aspects of the scam. It made use of fabricated documents, stolen cures, and loopholes in the system for profit. Here are the major findings:

Fake Ayushman Bharat Cards: Scammers created supporting documents to claim treatment services without paying.
Misuse of Poor Patient Welfare Funds: The scam was able to work towards compromising PGI’s financial aid system which is supposed to assist low-income patients.
Doctor Stamps Forged: Provided treatment to unqualified patients using forged doctor signatures and stamps as authorised.
Illegal Sale of Expensive Medicines: Expensive and specially targeted fraudulently obtained cancer cures were sold and bought.
Exploiting ‘Lost to Follow-up’ Patients: Patients who failed to show up for treatment were utilised to fraudulently allocate funds and medicines.
Long-term Staff Tenure Violates Guidelines: Various critics suggest that some staff working under the Poor Patient Welfare Cell overstepped their boundaries and were allowed to remain for prolonged periods suggesting a breach of CVC guidelines.

Investigations Underway

Ever since the police gave their statements, major departments and officials from the hospital have now been under investigation. Specific details on what progress has been made since last week are as follows:

FIR Filed on February 19: The Chandigarh Police have launched an Ayushman Cell PGI-focused criminal investigation and are actively pursuing leads.
Focus on Radiotherapy & Nephrology Departments: Employees of the major departments are being interrogated regarding the missing indent book pages and the stamps that were brought under custody.
Joint Action Committee Demands Transparency: The Employees Union PGI has also filed an RTI regarding the indent books that have mysteriously disappeared along with any preventative measures that need to be taken.

How The Fraud Was Conducted

The fraud was carried out through a well-planned scheme, exploiting weaknesses in the system. Fake documents and tampered records allowed expensive medicines to be misused. Here’s how it happened:

Procedure	What Happened in the Scam
Entitled patients submit documents endorsed by their physician.	Fake documents were created with forged doctor stamps.
Doctors assess the treatment cost, and medicines are purchased from approved vendors.	Medicines, especially expensive cancer drugs, were procured fraudulently.
Approved medicines are handed over to the patient, and records are maintained in the indent book.	Medicines were sold in the black market instead of being given to the actual patient.
The entire process is documented in indent books.	Indent books were tampered with or missing pages were discovered.

Impact And Concerns

The fraudulent activities resulted in the loss of trust as well as monetary loss, both of which are grave. Lack of proper supervision has allowed malpractice to flourish for years which has caused harm to the people who truly need it. These are the major worries:

Fraudulent Claims Led to Huge Financial Losses: Over five million were lost, touching the lives of authentic impoverished patients seeking affordable options.
Lack of Oversight in Welfare Funds: For over three years, loose supervision and no verification allowed witnessing of documents without proper oversight.
Risk of Misuse in Other Government Schemes: Exploitation of children in other government programs appears to be an issue, when it ought to raise the issue of more sophisticated monitoring.
Potential Political and Institutional Involvement: Dawood claimed to have evidence of local politicians, and healthcare workers ignoring parts of the Ayushman Bharat scheme and their patient's PGI poor patient fund and other schemes.

Steps Taken By PGI And Authorities

Authorities are taking strict action to stop fraud in the hospital system. They are improving security, updating records, and investigating deeply. Here are the key steps taken:

Internal Reminders Issued to PGI Staff: Officials have been instructed to remain vigilant and ensure compliance with standard procedures.
Implementation of HIS 2: The hospital plans to introduce HIS 2, a healthcare information system, to improve record-keeping and prevent fraudulent activities.
Investigation Extended to Multiple Departments: Chandigarh police are interrogating hospital staff from radiotherapy, nephrology, and financial departments.

Way Forward

Fraud in welfare systems is a growing concern. Weak verification and poor tracking allow misuse of funds. To stop this, stronger measures are needed:

Strict Digital Verification: Mandating biometric verification and digital signatures to prevent forgery.
Enhanced Security Measures: Strengthening tracking mechanisms for patient follow-ups to avoid misuse of names.
Regular Audits: Conducting frequent independent financial audits of welfare funds.
Public Awareness and Whistleblower Protections: Encouraging staff and patients to report suspicious activities without fear.

Conclusion

The purpose of the Ayushman Bharat scheme is to offer healthcare coverage for the most critical citizens in India. Such malpractice is aggravating as it not only robs valuable resources but also diverts patients from receiving valid services. While police investigations and internal audits continue, it is difficult to fathom how the PGI administration will take accountability, if at all, and stop these future scams.

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