KGMU is investigating an alleged ₹2 crore cancer medicine scam linked to the Asadhya Yojana.
Investigators found records showing medicines issued in the names of deceased patients.
Medicine expenditure reportedly rose from ₹10 lakh to over ₹45 lakh per month.
KGMU removed the Urology HOD, suspended a pharmacist, and terminated three outsourced employees.
The university plans to file an FIR as investigators examine suspected irregularities worth up to ₹2.5 crore.
Lucknow, June 3: King George's Medical University (KGMU) in Lucknow has launched a major investigation into alleged irregularities involving expensive medicines distributed under Uttar Pradesh's Asadhya Yojana, a government scheme that helps patients with serious illnesses access costly treatment. The scheme provides financial support for expensive treatments for patients with serious illnesses, including cancer. Preliminary findings suggest that medicines worth nearly ₹2 crore may have been improperly procured or issued through manipulated records, prompting disciplinary action against several employees and plans to file criminal complaints.
According to India Today, investigators found records suggesting that expensive medicines had been issued in the names of deceased patients. The report also stated that some medicines appeared to have been recorded against individuals who were not cancer patients. Authorities are examining whether patient records, prescriptions, and medicine distribution documents were manipulated to facilitate the alleged misuse of government-funded medicines.
The matter came to light after university authorities noticed a sharp increase in medicine expenditure in the Urology Department. According to KGMU records reviewed during the inquiry, spending on medicines remained around ₹10 lakh per month during October and November 2025. The expenditure later increased to nearly ₹40 lakh in February 2026 and exceeded ₹45 lakh in March 2026.
The unusual rise in spending prompted KGMU Vice-Chancellor Prof. Soniya Nityanand to order an internal audit and detailed investigation into medicine procurement and distribution records. According to reports, university officials initiated a detailed review of records on May 28 after noticing the sharp increase in medicine expenditure. The inquiry also examined medicines procured through the department's local purchase system, which allows hospitals to obtain drugs outside regular procurement channels when required for patient care.
The alleged irregularities involve medicines supplied through the Asadhya Yojana, which provides financial assistance for the treatment of patients suffering from severe illnesses, including cancer.
Investigators reviewed stock registers, procurement records, patient files, billing documents, and medicine distribution logs. A five-member inquiry committee was formed to examine the records and determine the extent of the suspected irregularities. Investigators are also examining records related to supportive-care medicines and injections that are commonly used to help patients undergoing treatment for serious illnesses.
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Authorities are examining whether patient records, prescriptions, and medicine distribution documents were manipulated to facilitate the alleged misuse of government-funded medicines.
According to The Statesman, investigators identified suspicious entries involving costly injections used as part of treatment and supportive care for patients with serious illnesses.
The injections reportedly cost between ₹8,000 and ₹10,000 per dose. Investigators noted that these medicines are generally administered at longer intervals. However, records allegedly showed multiple doses being issued to the same patients within short periods, in some cases several times within a single month.
The unusual pattern of medicine issuance raised concerns about whether the drugs had actually been administered to patients or whether records had been altered to justify additional procurement and distribution.
According to India Today, investigators visited the addresses of several patients whose names appeared in the records under review.
During verification, some patients and family members reportedly told investigators that they had not received medicines that hospital records showed had been issued in their names. Some beneficiaries also stated that they were unaware they had been enrolled under the Asadhya Yojana.
Authorities are continuing to verify patient records and medicine distribution documents as part of the ongoing investigation.
Following preliminary findings, KGMU initiated disciplinary action against several individuals linked to the case.
The university removed Dr. Apul Goel from his administrative position as Head of the Urology Department. According to Hindustan Times, the action was taken over alleged lapses in supervision and monitoring of activities related to the scheme. The university has reassigned him pending the outcome of the investigation.
KGMU also suspended pharmacist Arshad Wasi and terminated three outsourced employees identified as Prakash Singh, Hemant Srivastava, and Sachin Tiwari.
According to KGMU spokesperson Dr. K.K. Singh, the university has begun proceedings to recover any funds found to have been improperly used and has initiated steps for legal action against those responsible.
According to Times of India, KGMU has decided to file a First Information Report (FIR) against four employees after the inquiry committee submitted its preliminary findings.
While several reports estimate the suspected irregularities at approximately ₹2 crore. Authorities have not yet announced a final estimate and continue to examine records to determine the full extent of the alleged losses.
Officials are investigating whether the irregularities were limited to a few individuals or involved a broader network within the procurement and distribution process. The inquiry is also examining whether prescriptions, approvals, stock records, and medicine issuance documents were falsified.
The investigation remains ongoing, and KGMU officials have stated that further disciplinary and legal action will depend on the final findings of the inquiry.
Cancer medicines and other high-cost therapies distributed through government assistance schemes can be financially out of reach for many patients. Programmes such as the Asadhya Yojana are designed to improve access to treatment for economically vulnerable patients.
The KGMU investigation has raised concerns about oversight mechanisms governing the procurement and distribution of expensive medicines in public healthcare institutions. Authorities are now reviewing records to determine whether medicines intended for eligible patients were diverted or improperly documented and whether safeguards within the system were bypassed.
(Rh/MSM)