CBI Registers Case Against Former Lok Nayak Hospital Officials, Two Firms in Medical Procurement Scam

New Delhi, August 3, 2025:
The Central Bureau of Investigation (CBI) has launched a formal investigation into alleged irregularities in the procurement of medicines and surgical supplies at Delhi’s Lok Nayak Hospital, implicating two former top hospital officials and the proprietors of two private firms. The move follows a preliminary CBI inquiry initiated on the basis of confidential tip-offs regarding suspicious procurement practices between 2018 and 2021.

According to official reports, the CBI registered an FIR on July 30, naming Dr. Suresh Kumar, the former Medical Director of Lok Nayak Hospital; Dr. Hem Prakash, then Procurement Officer and CMO; Suresh Kumar Chaudhary, proprietor of M/s Adison Equipment Company; and Mayank Parashar, proprietor of M/s S R Surgical. The accused face charges of conspiracy and breach of trust, allegedly causing losses worth several crores of rupees to the government exchequer.

Allegations and Timeline

Investigators allege that S R Surgical, a local authorised chemist of the hospital, supplied branded medicines rather than generic alternatives, in violation of hospital procurement norms and without any documented requests from hospital departments. This practice, reportedly carried out in collusion with Dr. Hem Prakash, is believed to have resulted in substantial financial loss to the public health system.

The CBI’s FIR also highlights procedural lapses related to the hospital’s procurement tenders. An open tender for general store sanitation consumables and non-consumables—including macerators—was floated on May 31, 2017. Among the five participating firms, Adison Equipment Company and Faith Biotech Pvt. Ltd. were selected as “L-1” (lowest quote) suppliers and awarded a rate contract valid from January 29, 2018, to January 28, 2020.

However, instead of floating a new open tender upon contract expiry, Lok Nayak Hospital authorities repeatedly extended the same contract with Adison Equipment Company until July 13, 2021. The FIR notes that no justification was provided by the hospital for avoiding a fresh tender process, raising concerns over transparency and accountability in public procurement.

Ongoing Investigation

The CBI is now conducting a comprehensive probe into the matter, focusing on possible corruption and financial mismanagement. The investigation could have broader implications for procurement practices across government hospitals in Delhi.

Disclaimer:
This news article is based on information available from official statements and media reports as of August 3, 2025. Allegations detailed herein are under investigation and should not be construed as evidence of guilt pending the completion of the CBI inquiry and any subsequent judicial proceedings.