A shocking insurance fraud racket involving fake hospitals, bogus doctors and ‘ghost patients’ has been uncovered in Gurgaon after police raided a facility operating under the name Galaxy One Hospital in New Nihal Colony.
The investigation has revealed a multi-layered scam worth at least Rs 1 crore, where fabricated medical records and staged hospital admissions were used to file fraudulent insurance claims.
Hospital Raid Leads to Arrests
During the raid carried out on February 18, Gurgaon Police arrested A S Yadav (55), who was running the hospital, along with his two sons and three employees.
Officials recovered nearly 60 suspicious insurance claim files linked to about 25 companies, indicating that the scam had been running for a considerable period.
According to ACP (West) Abhilaksh Joshi, the fraud detected so far amounts to over Rs 1 crore, though investigators suspect the scale could be much larger.
How the Fraud Network Operated
Police say the racket followed a well-organised pattern:
Fake hospitals were set up to appear legitimate
Individuals were recruited as “patients” to submit insurance claims
Medical records such as lab reports, treatment details, admission papers and pharmacy bills were fabricated
Claims were then filed with insurance companies using these fake documents
Once the claim money was released, the amount was shared between the fake patients, hospital operators and middlemen.
Bogus Doctors and Fake Degrees
The case initially surfaced during a raid by the Haryana Chief Minister’s flying squad in May last year, when a doctor at the same hospital was found using MBBS and MD titles without holding a valid degree.
Following this discovery, a formal complaint was filed in February this year, leading to an FIR and the subsequent police raid.
Investigators are now examining the authenticity of Yadav’s own medical credentials after discovering that his MD degree was allegedly fake.
Larger Network Suspected
Police believe the arrested individuals are only a small part of a much bigger network operating across multiple locations.
Preliminary findings suggest that similar “paper hospitals” were set up in Farukhnagar, Dwarka and other areas, specifically to carry out insurance fraud.
Officials also suspect that private investigators associated with insurance companies may have played a role in approving the fake claims.
Over 500 Fake Patients Under Scanner
Investigators estimate that more than 500 individuals may have acted as bogus patients in the scam.
A Special Investigation Team (SIT) has been formed to trace these individuals and uncover the complete financial trail.
Authorities are also working with the health department to conduct further raids and identify other fake medical facilities linked to the network.
Police say the case could become one of the largest insurance fraud investigations in the region, with more arrests expected as the probe expands.
