Gorakhpur, February 9, 2026: Authorities have arrested three individuals, including the owner of Vidyawati Hospital, as part of an expanding investigation into a well-fabricated health insurance fraud network.

The arrests mark a significant development in the ongoing Discent Hospital insurance scam, which has already revealed large-scale misuse of the cashless health insurance system. According to the the police the fraud was not an isolated incident but it was said to be a part of coordinated network operating across multiple districts.

Who Has Been Arrested in the Fake Health Insurance Racket

Police identified the arrested individuals as:

• Indresh Yadav: Owner of Vidyawati Hospital. He is a resident of Pachohan in Uruwa Bazaar

• Aman Yadav alias Gaurav Yadav: Resident of Mahanapur Sonwa Tola under Shahpur police station jurisdiction

• Abhishek Sharma alias Honey Sharma: Resident of Saraswatipuram Lane No. 3, Shahpur

All three were presented before a magistrate on Sunday, February 9, 2026. They were subsequently sent to judicial custody as the investigation continues.

How the Insurance Scam Worked

According to investigators, the scheme involved creating complete treatment documentation for patients who were never actually admitted to any hospital. The operation was remarkably systematic and included the following:

1. Fake admission records

2. Fabricated treatment charts

3. Forged discharge summaries

4. Signatures resembling those of authorized doctors

"The fraud was not opportunistic but highly organized," explained SP City officials. "These individuals created a parallel system where treatment existed entirely on paper while real patients never stepped foot in the hospitals."

Origin of the Case

The current arrests stem from a complaint filed in September 2025 by a private insurance company at Ramgarh Tal police station. The complaint concerned a fake health insurance claim worth approximately ₹1.80 lakh. This was processed in the name of Satyadeep, a Delhi resident. When verification checks were conducted, investigators discovered that he had never been admitted to the hospital.

This discovery led to the initial arrests of Discent Hospital operators. These included owner Shamshul, partner Praveen alias Vikas Tripathi, a doctor, hospital manager, and other associates. TAs the investigation progressed, authorities uncovered at least 15 fake hospital admissions linked to Discent Hospital facilities in Gorakhpur and Basti. This resulted in fraudulent insurance claims totaling approximately ₹1.20 crore.

A Wider Network Under the Scanner

As investigators examined call records, financial transactions, and documentation patterns from the Discent Hospital case, they uncovered evidence pointing to Vidyawati Hospital's involvement. Then the forensic analysis revealed striking similarities in forged signatures, fabricated admission details, and documentation methods. This suggested the link of coordination between multiple hospitals.

Names of hospitals from Gorakhpur, Sant Kabir Nagar and Basti districts have since emerged in the case.

Investigation Continues

Authorities are currently conducting detailed examinations of bank accounts, digital payment trails, and call data records linked to all accused individuals. They are also working to map the complete extent of the network and identify any additional hospitals, agents, or intermediaries who may have participated in the fabrication of the scheme. A comprehensive audit of insurance claims processed through hospitals currently under scrutiny is being considered to identify additional cases of fraud.

(Rh/VK)