An unregistered hospital in the Baragaon area of Varanasi has been shut down and an FIR ordered after serious allegations of fraud under the central government’s flagship healthcare program, Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY). The move follows a direct complaint by a local beneficiary to a senior state minister and highlights renewed state efforts to curb misuse of public health funds.
A Patient’s Complaint Unveils the Deception
The action stems from a grievance raised by Surendra Banwasi, a resident of Nayepur village, who told authorities that Asha Hospital had charged his family for treatment despite the services being covered under the Ayushman Bharat scheme. His father had undergone treatment at the hospital, which later falsely claimed reimbursement under the government program.
During a Janata Darshan (public hearing), Surendra approached Suresh Khanna, Uttar Pradesh’s Finance and Parliamentary Affairs Minister and Varanasi’s in-charge minister, who ordered an immediate inquiry. The hospital was found not only to have claimed funds improperly but also to be operating without mandatory registration.
Hospital Sealed, FIR Ordered
District Chief Medical Officer Dr. Sandeep Chaudhary launched a prompt investigation, verifying the facility’s unregistered status. A medical officer, accompanied by local police from Baragaon station, arrived at the site and sealed the premises. On ministerial orders, a formal First Information Report (FIR) has been directed to hold the hospital administration accountable.
“This is a serious breach of public trust and misuse of government welfare,” Minister Khanna said. “Such institutions will be dealt with sternly.”
A Broader Pattern of Misuse
This incident is not isolated. A broader state-level probe into the Ayushman Bharat scheme recently unearthed fraudulent reimbursements worth ₹9.94 crore across 39 hospitals in Uttar Pradesh. Following a forensic audit and pattern analysis, FIRs have been registered, and these hospitals are being investigated for misappropriating public funds meant for free healthcare to the underprivileged.
The National Health Authority (NHA) and the state’s health department have both reiterated a zero-tolerance policy on scheme fraud. Automated claim monitoring, AI-based red flags, and patient feedback systems are being scaled up to prevent recurrence.
Government Sends a Clear Message
The swift action in Varanasi is seen as a signal that the state will not tolerate any attempt to exploit the Ayushman Bharat scheme, which aims to provide free hospitalization cover of up to ₹5 lakh per family per year to India’s poorest.
Officials emphasized that grievance redressal mechanisms are functioning and that direct complaints from citizens remain a crucial tool in unearthing healthcare fraud. The state has also urged citizens to verify and report any discrepancies during hospital visits under the PM-JAY scheme.
“Every rupee of government money must go to the patient. The system is being cleaned from within,” said one official overseeing scheme implementation.