RGHS Fraud Uncovered: Rajasthan Cancels 31 Medical Store Licenses, AI Boosts Crackdown

Rajasthan's Drug Controller Department has permanently cancelled licenses for 31 medical stores due to severe irregularities in the RGHS scheme.

MTTV Desk
MTTV Desk Verified Media or Organization • 04 Jun, 2026 Chief Editor
Jul 28, 2026 • 9:51 PM
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RGHS Fraud Uncovered: Rajasthan Cancels 31 Medical Store Licenses, AI Boosts Crackdown
“RGHS Fraud Uncovered: Rajasthan Cancels 31 Medical Store Licenses, AI Boosts Crackdown”
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28 Jul 2026
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RGHS Fraud Uncovered: Rajasthan Cancels 31 Medical Store Licenses, AI Boosts Crackdown
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    Major Crackdown on RGHS Irregularities

    Jaipur: The Drug Controller Department in Rajasthan has permanently revoked the licenses of 31 medical stores. This decisive action comes after serious irregularities were uncovered within the Rajasthan Government Health Scheme (RGHS). Authorities are also actively pursuing recovery of excess payments, temporary suspension of Transaction Management System (TMS) access, de-panelment, and other lawful proceedings.

    Principal Secretary for Medical and Health, Gayatri Rathore, confirmed that investigations revealed a disturbing pattern. Several medical stores were found colluding with doctors and beneficiaries, submitting fraudulent claims. This included instances where fake doctor signatures were used, and claims were made for non-payable items instead of actual medicines. Such actions are being treated as grave financial irregularities, leading to strict measures against the involved stores.

    Statewide Impact of Cancellations

    The cancelled licenses span across multiple districts. Jaipur saw the highest number with 11 stores, followed by Bharatpur with 9. Nagaur and Dholpur each had 2 licenses revoked. One medical store each in Hanumangarh, Bhilwara, Sikar, Jodhpur, and Alwar districts also faced permanent license cancellation.

    AI Deployed to Combat Fraud

    Rathore also highlighted a significant step forward in monitoring. Daily drug claims under RGHS are now undergoing intense scrutiny at various levels. An Artificial Intelligence (AI) based analysis system is being utilized to identify potential irregularities. This technology automatically flags cases involving artificial price inflation, abnormal MRPs, incorrect pricing, unverified claims, wrong product mapping, and other misleading information, ensuring timely action.

    Discount Violations and Inflated Claims

    Recent probes have also brought to light severe price irregularities in many drug claims. Medications such as Exemptia 40 mg, Denberi injection, Terifrac (Teriparatide), and Trulicity 1.5 mg were claimed at excessively high rates compared to their market prices. Furthermore, many medical stores failed to provide the mandatory minimum discount as per RGHS rules. While a minimum 40 percent discount was expected, some cases showed as little as 12 percent or even less. Investigations also revealed claims for amounts two to five times the actual purchase price of several medicines.

    Further Actions and Future Plans

    Harjilal Atal, Chief Executive Officer of the Rajasthan State Health Assurance Agency, stated that in light of these irregularities, the TMS access for 10 medical stores has been temporarily suspended. Additionally, show-cause notices have been issued to 13 other medical stores, instructing them to provide explanations as per regulations. The state government is also developing a new action plan to effectively control profiteering and financial irregularities in future drug claims, which is expected to be implemented soon.

    FAQ

    Q1: What is the Rajasthan Government Health Scheme (RGHS)?

    A1: The Rajasthan Government Health Scheme (RGHS) is a healthcare initiative by the Rajasthan state government designed to provide medical facilities and financial assistance for treatments to its employees, pensioners, and their dependents.

    Q2: How can beneficiaries report suspected irregularities in RGHS claims?

    A2: Beneficiaries who suspect irregularities in RGHS claims, such as incorrect billing or fraudulent practices by medical stores, should contact the Rajasthan State Health Assurance Agency or the Medical and Health Department through their official channels for investigation.

    For more detailed news coverage, visit https://en.mttvindia.com.

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    MTTV Desk Verified Media or Organization • 04 Jun, 2026 Chief Editor

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