LUCKNOW: The Enforcement Directorate (ED) has registered a case and initiated an investigation into alleged financial irregularities of nearly Rs 100 crore in the procurement and supply of medicines and medical equipment to government hospitals in the Devipatan division. Former Congress MLA Mukesh Srivastava has been named the principal accused in FIRs lodged in three districts.The alleged scam is said to have taken place between 2013 and 2014. As part of its probe, the ED has sought records spanning seven financial years, from 2019-20 to 2025-26, from the managing director of the Uttar Pradesh Medical Supplies Corporation Limited (UPMSCL). The agency has requested documents related to procurement and supply contracts involving companies allegedly linked to Srivastava and his associates.The investigation covers govt hospitals in Balrampur, Shravasti, Gonda and Bahraich districts.According to sources, the ED is scrutinising tender and procurement records, supply orders, payments, bank guarantees and financial transactions involving nine companies allegedly connected to the former MLA’s family members, relatives and associates.The agency has also sought details of allegedly substandard supplies, funds released to hospitals, utilisation certificates and medical reimbursement records, marking the requisition as “most urgent”.The probe stems from a vigilance establishment investigation that led to Srivastava’s arrest. Investigators allege that companies linked to him secured contracts worth more than ₹18 crore for medicines, medical equipment, furniture and maintenance work in three districts by using forged documents, shell entities and procedural violations.The investigation further alleges that funds earmarked for medicines, equipment and hospital maintenance were released against incomplete or non-existent work and supported by fabricated bills.Several former health department officials, including retired chief medical officers and engineers, have also come under the scanner. Allegations being examined include tender irregularities, unauthorised exemptions and misuse of the Government e-Marketplace (GeM) portal.Investigators are additionally scrutinising Srivastava’s assets, including hotels, farmhouses and land holdings, to determine whether they are disproportionate to his known sources of income.Sources said the ED is also examining whether the alleged modus operandi bears similarities to elements of the 2011 National Rural Health Mission (NRHM) scam.
