PGI Scam: Chemist's Fraudulent Price Hike Exposed by RTI

A recent investigation has uncovered a shocking pricing scam at the Postgraduate Institute of Medical Education and Research (PGI) in Chandigarh. A local chemist manipulated the cost of a medical item, Innova Plast, from its actual procurement price of Rs 38 to a falsely labeled MRP of Rs 410. This fraudulent markup, revealed through a Right to Information (RTI) request, represents a staggering 978% increase.

Details of the Fraudulent Scheme

The chemist's scheme involved placing counterfeit MRP stickers on the product packaging, misleading consumers into paying Rs 205 per piece. Although this seemed like a discount from the inflated MRP, it still forced patients to pay 440% more than the genuine procurement cost. Such practices violated mandatory tender requirements, which dictate a 15% discount on branded drugs and 30% on generic medicines.

Termination and Wider Implications

As a result of the findings, the PGI management terminated the chemist’s tender on June 18, 2025. This individual case is part of a larger financial fraud within PGI, known as the private grant cell scam, which involved the misappropriation of Rs 1.14 crore intended for underprivileged patients. The scam first came to light when a beneficiary's attempt to access medicines via a welfare grant exposed irregularities.

An internal inquiry led by Prof. Arun K Aggarwal in February 2023 uncovered a network of corruption involving public servants, outsourced staff, private individuals, and local chemists. Despite initial detection, it took the committee 15 months to conclude its investigation, finally reporting its findings in July 2024.

Escalation to Authorities

The RTI application, filed in February 2025, was initially met with resistance from officials. However, persistent efforts by Ashwani Munjal, who pursued the RTI case, led to the Central Vigilance Officer (CVO) referring the scam to the Central Bureau of Investigation’s Anti-Corruption Bureau on February 22, 2025. This referral was a critical step in addressing the misuse of public funds and holding those responsible accountable.

The PGI case underscores the need for stringent oversight and transparency in healthcare procurement processes to prevent exploitation and ensure that public funds serve their intended purpose.