Major crackdown on health supplier under CM’s Zero Tolerance Policy: GST department exposes ₹1 crore tax evasion in ₹48 crore worth supplies

Raipur, July 26, 2025: In line with Chief Minister Vishnu Deo Sai’s zero-tolerance policy against corruption and his commitment to ensure transparency in government procurement, the State GST Department conducted a major raid on M/s Shyam Surgical, a prominent surgical and medical equipment supplier based in Raigarh. The firm supplies medical goods to government hospitals not only in Chhattisgarh but also in neighbouring states like Jharkhand and Odisha.

According to initial findings from the State GST Department’s investigation, the supplier executed government supplies worth approximately ₹48 crore to the Health Department over the past 4–5 years, while the actual purchase value of the goods was merely ₹10 crore. The probe revealed that the firm inflated prices 4 to 5 times over the purchase value, reaping profits of 400 to 500 percent.

To hide these inflated profits and evade tax liabilities, the business owner floated three additional firms in the names of his family members – Rahul Enterprises, Narayani Healthcare, and P.R. Enterprises. These shell firms were used to conduct internal transactions that created a façade of genuine purchases and sales, ultimately leading to an estimated ₹1 crore in GST evasion.

Acting on clear directives from CM Sai, Finance Minister O.P. Choudhary had earlier instructed officials to maintain strict vigilance over government supply contracts and swiftly identify any irregularities. It was under this mandate that the State GST Department launched its investigation and carried out the enforcement action.

Chief Minister Sai has reiterated that the state government will not tolerate any form of corruption, especially in sectors linked to public welfare and essential services like health. “Such fraudulent practices are not just economic crimes – they are a betrayal of public trust,” he stated.

The state government has issued a stern warning to all suppliers and contractors that any individual or entity found misusing the government system to earn undue profits will face the strictest possible action.

This operation stands as a strong example of the state government’s honest, transparent, and public-centric administrative approach. It sends a clear message that under the leadership of CM Vishnu Deo Sai, Chhattisgarh is firmly committed to rooting out corruption and protecting the interests of its people.