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Sprouts News > Blog > News Point > Education > School Health Program Scam Exposed: ₹43 Cr Fraud Uncovered.
EducationExclusive

School Health Program Scam Exposed: ₹43 Cr Fraud Uncovered.

Unmesh Gujarathi - Senior Journalist and Editor-in-Chief of Sprouts News Media House
Last updated: June 30, 2025 3:48 pm
Unmesh Gujarathi
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₹43 Cr Scam Hits School Health Program

School Health Program
School Health Program

• Health Check-Up Fraud Exposes Tender Mess

• RBSK Scam: One Bidder, Big Payout

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
A ₹43 crore scam has been exposed in Maharashtra’s school health check-up program under RBSK. Irregularities in vehicle tenders, contract violations, and pre-qualification lapses point to deep-rooted corruption. The Sprouts News Team highlights involvement of top officials and demands strict action, blacklisting of the contractor, and urgent procurement reforms.




Contents
₹43 Cr Scam Hits School Health Program• Health Check-Up Fraud Exposes Tender Mess• RBSK Scam: One Bidder, Big PayoutMassive Corruption Unearthed in National Child Health ProgramTender Process Breached; Transport Officials Under ScrutinyDemand to Blacklist Contractor Maharashtra Vikas GroupHow the ₹43 Crore Scam Was OrchestratedAlso Read: Adani Bids for Mumbai SRA Plots in Mega Land Grab.Policy Implications and Public Health ImpactA Test Case for Reform in Public Procurement

Massive Corruption Unearthed in National Child Health Program

A fresh wave of corruption has gripped Maharashtra’s public health system, with a ₹43 crore scam now exposed in the Free School Health Check-up initiative under the National Child Health Program (RBSK). Investigations reveal deep-rooted irregularities in the vehicle procurement process, essential for conducting health screenings of schoolchildren across the state.
As per the program, mobile medical teams are supposed to visit schools using rented T-permit vehicles. However, serious violations of procurement norms, financial misconduct, and contract manipulation have come to light. According to a Sprouts News Team probe, the Department of Public Health went ahead with contract finalization even before the selected vendor submitted the mandatory vehicle list—a key eligibility requirement under tender conditions.

Tender Process Breached; Transport Officials Under Scrutiny

The procurement was executed without compliance to predefined conditions. The tender required submission of T-permit vehicle lists before finalizing agreements, but this clause was ignored. Despite glaring omissions, payments were sanctioned, raising suspicions of deliberate fraud and favoritism.
At the center of the controversy is then Deputy Director of Transport, Kailas Karale, who allegedly played a key role in bypassing standard procedures. Civic activists are now calling for strict disciplinary action against him. The Sprouts News Team has accessed internal reports confirming Karale’s direct involvement in enabling the financial misappropriation and aiding the contractor.



Demand to Blacklist Contractor Maharashtra Vikas Group

The contract for supplying vehicles was awarded to M/s Maharashtra Vikas Group, a private company now under fire for alleged corruption. Social workers and whistleblowers are demanding that this firm be blacklisted and subjected to a forensic audit.
Accusations include misrepresentation of compliance and receiving work orders prior to formal qualification, violating the competitive spirit of public tenders. Calls are growing louder for a full probe by anti-corruption authorities and an independent review by the Comptroller and Auditor General (CAG).

How the ₹43 Crore Scam Was Orchestrated

Under procurement rules, at least three technically qualified bidders must be present to proceed with financial bid openings. However, the process went ahead despite only one final bidder qualifying, violating competitive bidding norms. Initially, first and second extensions were issued, but each time only one vendor qualified—a red flag that was ignored.
Officials allegedly fabricated records to justify awarding the contract, citing urgency and the impending implementation of the Model Code of Conduct. The Sprouts News Team has learned that the work order was issued hastily, bypassing transparency and inviting concerns about kickbacks and pre-election fund misappropriation.

Also Read: Adani Bids for Mumbai SRA Plots in Mega Land Grab.

Policy Implications and Public Health Impact

This scandal not only exposes flaws in public health procurement practices but also undermines the integrity of programs meant for vulnerable populations—school-going children in this case. Misuse of ₹43 crore meant for children’s health check-ups represents a severe breach of public trust and accountability.
Experts say such malpractices endanger preventive healthcare infrastructure and violate the spirit of the National Health Mission. Stakeholders now demand that audit mechanisms be strengthened, tender conditions enforced uniformly, and political interference eliminated.



A Test Case for Reform in Public Procurement

The ₹43 crore scam linked to the RBSK vehicle procurement is yet another instance where systemic lapses and individual misconduct intersect to erode public faith. The role of key officials, especially from the Transport and Health Departments, must be scrutinized through a multi-agency investigation.
As this story gains traction, the Sprouts News Team urges policymakers to use this case as a benchmark for overhauling tender governance and restoring transparency in public health delivery.
TAGGED:Children’s Health Insurance Program scamEducation Funds Illegally RoutedSchool health insurance scam
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Unmesh Gujarathi - Senior Journalist and Editor-in-Chief of Sprouts News Media House
ByUnmesh Gujarathi
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Unmesh Gujarathi – A Veteran Voice in Indian JournalismWith over 28 years of experience, Unmesh Gujarathi stands as one of India’s most credible and courageous investigative journalists. As Editor-in-Chief of Sprouts, he continues to spearhead the newsroom’s hard-hitting journalism.Past Editorial Roles: • DNA (Daily News & Analysis) • The Times Group • The Free Press Journal • Saamana • Dabang Dunia • Lokmat• Master of Commerce (M.Com) • MBA • Degree in JournalismBeyond his editorial leadership, Unmesh is a prolific author, having written over 12 books in Marathi and English on subjects such as Balasaheb Thackeray, the RTI Act, career guidance, and investigative journalism.A regular contributor to national dailies and digital platforms, his work continues to inform, challenge, and inspire.• A journalist. A leader. A voice for the people.
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