₹11 Crore Modular ICU Fraud Exposed in Nashik Hospitals.

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

The Sprouts News Investigation Team (SIT) has exposed a ₹11 crore Modular ICU scam in Nashik and Malegaon hospitals during COVID-19. A forged-license firm won 11 tenders, breaching procurement laws. The fraud’s scope may reach ₹50 crore statewide, prompting blacklisting, criminal charges, and calls for healthcare procurement reform.

The Sprouts News Investigation Team (SIT) has uncovered a shocking multi-crore scam involving the construction of “Modular ICUs” at Nashik District Hospital and Malegaon General Hospital during the COVID-19 pandemic. According to official records, a bogus, license-forged company was awarded multiple tenders, causing an estimated ₹11 crore loss to the government — a figure that could rise to ₹50 crore as the fraud’s full scale emerges.

Investigations reveal that the fraudulent firm, Crenovative Powertek Pvt. Ltd. (CPPL) from Thane district, was awarded the ICU project without proper verification of its licenses or compliance.

•₹3.37 crore was paid for just 50% completion of the Modular ICU tender.

•₹7.65 crore was disbursed through 10 other equipment procurement tenders, including ventilators, Holter monitors, and critical care devices.

In total, ₹11.02 crore in public funds was transferred to the bogus firm, with payments processed despite mounting complaints about irregularities.

In 2021–2022, under the ECRP-2 scheme, Nashik District Hospital was sanctioned a 30-bed Modular ICU and Malegaon General Hospital a 10-bed facility. Without state-level approval, the project was initiated, bypassing procedural safeguards.

When the Directorate of Health Services flagged excessive expenditure and lack of approval, the then District Civil Surgeon submitted a revised ₹6.74 crore proposal — reducing cubicle partitions but not lowering the base cost. This raised further suspicion of inflated pricing and deliberate cost-padding.

A special three-tier investigation — two at the divisional level and one at the state level — confirmed major violations. The FDA Thane Joint Commissioner verified that CPPL’s drug license and annual balance sheet certificates were forged.

The SIT’s report also cites that a district hospital employee’s wife and father were shareholders in the same company, breaching Maharashtra’s public procurement policy and indicating collusion between officials and the contractor.

•CPPL be blacklisted immediately.

•Criminal proceedings be initiated against all involved officials and employees.

•The procurement policy violations be documented as a formal case study for state-level compliance training.

Former Nashik Zilla Parishad CEO Ashima Mittal has directed the District Civil Surgeon to file criminal charges against the accused officials and company representatives.

The Sprouts News Investigation Team (SIT) warns that CPPL, leveraging its Nashik work orders, has secured contracts in several other Maharashtra government hospitals. If similar fraudulent practices are confirmed in these projects, the scam’s total value could exceed ₹50 crore.

The SIT’s findings raise urgent questions about public procurement oversight, healthcare project monitoring, and corruption safeguards during emergency tenders. Health department insiders admit that COVID-era procurement, rushed under crisis conditions, created loopholes ripe for exploitation.

•Primary Scam Location: Nashik District Hospital & Malegaon General Hospital

•Main Accused Company: Crenovative Powertek Pvt. Ltd. (CPPL)

•Confirmed Fraud Amount: ₹11.02 crore

•Potential Total Exposure: Up to ₹50 crore statewide

•Nature of Fraud: Forged licenses, inflated costs, tender process violations

•Policy Breach: Public procurement rules, conflict of interest laws

Sprouts News Investigation Team (SIT) will continue to track this case, with a focus on unearthing similar frauds in Maharashtra’s healthcare infrastructure projects and pushing for systemic procurement reforms.