Doctor, medical equipment suppliers held for fraud

S. Vijay Kumar

CHENNAI: The Anti-Corruption Branch of the Central Bureau of Investigation on Friday arrested a doctor and two suppliers of medical equipment in Madurai in connection with a major fraud case. A search is on for 10 doctors, including some government medical practitioners and a bank manager, whose names have been included as accused in the case.

According to CBI sources, the modus operandi of the accused doctors was to obtain loans from Corporation Bank under the ‘Corp Meditech Scheme’ that provides advances for purchasing medical equipment. Fake documents, including invoice, delivery and installation reports, would be furnished with the help of suppliers. After giving commission to the suppliers and the bank manager, the doctors would take the money and later default on repaying the loan.

The former manager of Corporation Bank’s West Masi Street Branch, Kumar, has been named as the first accused for disbursing such loans to the tune of Rs.1.5 crore.

A special team investigating the case arrested Dr. C.R. Subramanian who conspired with S. Shanmugavel, Director of Cape Medical Pvt. Ltd., Tirunelveli, and Ziavudeen, proprietor of Pioneer Marketing Agencies, Madurai, both distributors of medical equipment. The case was registered based on a complaint by the Deputy General Manager of the Corporation Bank. “None of the medical practitioners has repaid the loan amount, which resulted in a loss of about Rs.1.5 crore to Corporation Bank. All the three arrested accused persons were produced in a special court and have been remanded to judicial custody till February 5,” a CBI officer said. The issue would be brought to the notice of the Medical Council of India during the course of investigation for appropriate action, he added.

Recommended for you