NV101 Desk
Srinagar: What began as a routine inquiry at the Sher-i-Kashmir Institute of Medical Sciences (SKIMS) in 2023 has evolved into a troubling saga of alleged financial misconduct, administrative reversals, and lingering questions regarding accountability within the Ayushman Bharat (AB-PMJAY) scheme.
In May 2023, three pharmacists—including the then-Chief Pharmacist—were suspended after an initial inquiry uncovered severe irregularities in the verification of medical bills. The investigative committee found that hundreds of files had been processed without due diligence, leading to pricing discrepancies, overbilling, and blatant violations of established discount protocols.
The findings pointed to a systematic pattern of negligence. Technical verifiers allegedly failed to cross-check bills against market rates and Maximum Retail Price (MRP) guidelines, resulting in inflated claims and questionable payments to vendors.
Recognizing the gravity of the situation, the former Director, Dr. Parvez Koul, convened a high-level meeting. In a rare display of consensus, 23 senior faculty members—including top finance and administrative officials—unanimously supported referring the matter to an external third-party vigilance agency. The signed directive was clear: over 1,200 files required a thorough audit, the suspected embezzlement necessitated an independent criminal investigation, and accountability had to be established at every institutional level.
However, the trajectory of the investigation shifted dramatically under new leadership. The current Director, Dr. Ashraf Ganaie, bypassed the vigilance recommendation and instead formed a new internal audit committee. This decision sparked concerns across administrative and medical circles, with critics arguing that an internal review lacked the transparency required for a scandal of this magnitude.
Ironically, the internal audit eventually confirmed the very discrepancies it was meant to re-examine. By October 2025, the committee revealed significant financial irregularities, including:
Excessive vendor payments.
Manipulation of billing records.
Disregard for MRP norms and Memorandum of Understanding (MoU) discount terms.
Inconsistent deductions.
The audit estimated the total financial impact to be between ₹3.5 crore and ₹4 crore. In several instances, direct comparisons between audit findings and original bill checks revealed glaring mismatches, highlighting profound systemic flaws.
While the committee held the three suspended officials responsible for neglect and recommended strict disciplinary action, the administration took an unexpected turn last week: all three officials were reinstated. This move has ignited a fierce debate over governance. If a loss of nearly ₹4 crore has been confirmed, why was the unanimous decision for a vigilance probe scrapped? Furthermore, does the reinstatement of these officials undermine the documented findings of negligence?
Insiders at SKIMS argue that the breakdown is not limited to individual errors. The evidence suggests that multiple layers of supervision and financial oversight failed simultaneously, indicating a broad institutional collapse. The case has exposed critical vulnerabilities in the local implementation of the Ayushman Bharat scheme, specifically regarding vendor monitoring and contract enforcement.
Nearly three years after the initial red flags, the SKIMS Ayushman Bharat case remains a complex web of documented irregularities and administrative U-turns. As the institution moves forward, a central question remains: Can internal reviews truly provide justice when the system itself is under scrutiny?
Meanwhile, Nationvoice101 attempted to seek a response from the Director, SKIMS, but no reply was received.
