Chhattisgarh GST dept busts Rs 1 crore tax evasion by medical supplier in Rs 48 crore govt supply scam
RAIPUR:
Chhattisgarh GST department has exposed one of the biggest crackdowns of Rs 1 crore tax evasion scam linked to inflated medical supply contracts worth Rs 48 crore by a Raigarh-based firm accused of allegedly manipulating invoices and routed transactions through shell companies to dodge taxes and secure massive profits from govt health contracts.
According to a press release issued by govt, 'The audit of the allegedly accused firm, M/s Shyam Surgical, which supplies surgical and medical equipment to govt hospitals across Chhattisgarh, Jharkhand, and Odisha, is accused of evading over Rs 1 crore. The investigation, launched after a detailed audit of the firm's dealings with the state health department, revealed that M/s Shyam Surgical supplied medical goods worth Rs 48 crore over the last 4–5 years.
The actual purchase value of these goods was just around Rs 10 crore. Authorities say the company inflated prices by up to five times, pocketing illegitimate profits between 400–500% on critical health supplies.'
To mask the price inflation and evade taxes, the company reportedly set up three shell entities- Rahul Enterprises, Narayani Healthcare, and P R Enterprises, in the names of family members. These firms were allegedly used for internal circular transactions to simulate market-rate purchases and justify overpricing, thereby siphoning off profits while evading tax dues.
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Acting on instructions from Finance Minister O P Choudhary, state GST department initiated the probe as part of a wider review of public procurement contracts. The enforcement action was part of a broader directive issued by Chief Minister Vishnu Deo Sai who pushes for transparent governance and accountability, especially in welfare-related departments like health, the release stated.
A senior GST official familiar with the investigation said, 'Such unethical profiteering on health supplies directly affects hospitals and patients who rely on the govt for affordable care.'
Chief Minister, while commenting briefly on the development, said the govt views any corruption in essential sectors like health as a betrayal of public trust, and warned of severe consequences for violators. 'We will ensure that those exploiting the system for profit are held accountable,' CM said.
State officials have issued fresh warnings to all suppliers involved in govt procurement, stressing that manipulating tenders, invoices, or tax filings will invite the harshest legal consequences.
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