A series of anomalies in key departments of King George’s Medical University (KGMU), Lucknow, have raised concerns over institutional oversight, internal controls and accountability mechanisms at one of the premier government medical institutions in Uttar Pradesh. From the cancer drug scam in the urology department to questionable stent implantation in cardiology and active broker nexus in ophthalmology, the hospital is grappling with systemic failures that allegedly allowed transactions worth lakhs bypassing multiple layers of scrutiny.
While disciplinary action has been initiated against some employees in individual cases, the documents and official records reviewed by HT raise a broader question: How did transactions involving millions of rupees, medical procedures and procurement decisions pass through multiple layers of scrutiny without red flags?
Deputy Chief Minister Brajesh Pathak said, “We are taking strict action in these cases. Suspension has been made and further investigation will be done to ensure that such acts do not happen again.” He further said, “The action will continue and I have written to the university authorities to ensure that every aspect of any fraud is investigated and the culprits are identified.”
KGMU Vice-Chancellor Professor Sonia Nityananda said she is committed to fairness and will not spare anyone responsible for wrongdoing.
The biggest concern has emerged from the alleged cancer drug scam worth crores of rupees related to the Asadhya scheme in the Urology department.
According to KGMU officials, the department is purchasing medicines worth around Rs 2000. ₹Rs 10 lakh every month under the Asadhya Yojana, which provides free treatment to economically weaker patients suffering from serious diseases. However, the beginning of this year saw an abnormal increase in expenditure under the scheme, reaching three to four times the normal level.
Officials said the procurement of medicine has almost reached ₹45 lakh last month alone, creating suspicion within the university administration. Scrutiny of records allegedly revealed repeated purchases of expensive medicines, including cancer drugs, protein supplements and iron supplements, in the names of about 40 patients who were dead or not in the records.
KGMU officials said further action would be taken based on the outcome of the ongoing investigation and efforts were on to recover the alleged financial loss suffered by the institute.
According to documents examined by HT, an ad-hoc employee was tasked with preparing drug indents related to high-value cancer drugs worth several lakhs of rupees. Hospital procedures usually require such responsibilities to be handled by authorized permanent staff or nursing officers.
The records available with HT include the employee’s name, identity details and signatures on documents related to patients treated under the government-funded scheme.
The development has raised questions about who authorized the employee to perform the work that forms the foundation of the procurement chain and whether any supervisory checks were conducted before the indents were processed.
Further investigation focuses on the role of a doctor who allegedly prescribed medicines and verified indentations for a patient, whose admission records are now under investigation. Documents reviewed by HT indicate that processing of the drugs continued despite emerging questions regarding the patient’s treatment history.
Officials familiar with the procurement process said medicine indents for admitted patients are first prepared by authorized departmental staff and later verified through the hospital’s main stores system.
When medicines are not available in stock, purchases are made through the Hospital Revolving Fund (HRF) under local purchase provisions and supplied free of cost under welfare schemes including the Asadhyay scheme.
The requests are then sent for approval through specified administrative channels including the office of the Deputy Medical Superintendent (DMS).
Payment of HRF bills involves verification at several levels. The documents are scrutinized by the concerned department, treating doctor, indentor, department head, medical superintendent and finance officers before the payment is processed.
The existence of this multi-tier approval structure has intensified questions about accountability. Despite many officials being part of the approval chain, actions so far have been largely limited to a limited number of employees, while questions regarding supervisory responsibility remain unanswered.
The controversy in the urology department comes amid fresh investigations in two other major departments.
On Wednesday, KGMU ordered a high-level inquiry into allegations of placement of five stents in a single patient in the Lari Cardiology Department. The five-member committee is tasked with examining whether the procedure was medically justified and in line with established clinical protocols.
The probe has also been expanded to review the treatment records of about 15 patients who underwent stent implantation or other cardiac interventions under the Ayushman Bharat scheme, amid concerns that similar irregularities may have occurred in additional cases.
Only 1 Ayushman surgery out of 244 in 6 months: Investigation
Fresh findings have emerged in the investigation into allegations that patients in the ophthalmology department of KGMU were directed to buy medicines and cataract lenses from private shops.
The investigators found that a doctor in the department performed 244 cataract surgeries in the last six months, but only one surgery was performed under the Ayushman Bharat scheme. Records examined by the investigation team revealed that all the remaining procedures were done on payment basis.
Officials said around 50% of cataract surgeries in the department are usually done under government cashless schemes.
The investigation revealed that lenses supplied through the Hospital Revolving Fund (HRF) were used only in about 70% of the cases, even though a wide range of lenses were available through the facility. Officials said the expected utilization rate of HRF-provided lenses should be between 95% and 100%.
The investigation team is also probing allegations that patients were encouraged to buy lenses and medicines from private shops and whether paid surgeries were being given priority over those covered under government schemes.
Controversies have emerged despite substantial public expenditure on patient care and procurement. According to sources, the annual budget allocation of KGMU is around Rs 10 crore. ₹₹288 crore for medicines and surgical consumables. an extra ₹The university’s main store has been allocated Rs 50 crore for welfare schemes including Ayushman Bharat, Asadhya Yojana and other government-funded patient assistance programmes.
Authority-Speak Professor Sonia Nityananda, KGMU Vice Chancellor
‘Exposing corruption is not a failure, it is an achievement’
Q The scams in various departments that have come to light in the last few weeks were going on for the last one year…does this reflect adversely on the KGMU system?
We had implemented many SOPs… It is because of these and the impartial monitoring mechanism that these scams have come to light. Therefore, this issue should not be seen as a reflection of poor administration at KGMU. Once a system is able to detect wrongdoing, the focus should not be on whether the exposure has a positive or negative impact on the institution. The real question is whether the university takes appropriate action against those responsible after detecting such irregularities through its internal mechanisms. This is the true test of institutional integrity.
Question: Some outsourced/contractual staff have faced action… will more penalties fall on senior faculty?
A The suggestion that action has been taken only against outsourced or contract employees is incorrect. A permanent pharmacist in the urology department was suspended, an FIR was registered against him and the HOD was removed from his administrative post. These actions demonstrate that accountability is being enforced regardless of an individual’s status. A show cause notice has also been issued to the Vice Chancellor of the university.
QDoes this failure of the system affect your tenure?
Exposing corruption is not a failure but an achievement.
Q Earlier, Principal Secretary (Medical and Health) Partha Sarathi Sen Sharma had said that a portal/app has been developed to track drug usage. what happened to that?
A. These exposures are the result of the combined use of the app, the SOPs we have introduced, and regular monitoring.
action taken so far
Notices were given
Prof. VC, Prof. Apjit Kaur, HOD, Ophthalmology and Nursing Officer Chetna (OT Incharge, Ophthalmology)
transferred
Dr. Apul Goyal, head of the Urology Department, has been removed from the administrative post after the investigation confirmed irregularities in the purchase of medicines under the Asadhya scheme. To ensure a fair investigation, he has been transferred to another department pending further investigation.
Suspended
Dr Sanjeev Gupta of the ophthalmology department was suspended after an investigation committee recommended filing an FIR against Dalal Abbas, who allegedly worked within the department and directed patients to specific medical stores; FIR recommended against Abbas
Arshad Wasi, a regular pharmacist posted at the local purchasing counter of the Urology Department, has been suspended. The university has also demanded criminal action against him.
Three ad-hoc employees dismissed
Prakash Singh, Department of Urology (Contractual Employee).
Hemant Srivastava (LP Counter, IPD Contract Employee)
Sachin Tiwari, Department of Urology (Contractual Employee)
What next?
* Documents will be scrutinized in seven departments including Radiotherapy, Surgical Oncology, Urology, Obstetrics and Gynecology Department, Gynecological Oncology, Medical Oncology and Endocrine Surgery.
* HRF (Hospital Revolving Fund) under scrutiny.
* Since only two months are left in the VC’s tenure, the big question is whether she will be able to complete the ongoing investigation into various irregularities in the departments concerned.
