Financial Irregularities at RG Kar: All About The Case That Led to Sandip Ghosh's Arrest

Kolkata: Sandip Ghosh, the former principal of RG Kar Hospital who was at the centre of a storm following the rape and murder of a 31-year-old doctor on the hospital premises was arrested by the anti-corruption branch of the Central Bureau of Investigation (CBI) on Monday in connection with alleged financial irregularities in the medical establishment during his tenure. 

Ghosh was questioned for the 15th day at the agency's Salt Lake office over the alleged rape and murder of the RG Kar hospital post-graduate trainee on August 9. 

He was later escorted to the CBI's Nizam Palace office in Kolkata which houses the agency's anti-corruption wing and was shown as arrested. The hospital's former deputy superintendent Dr Akhtar Ali had lodged complaints of financial irregularities on multiple counts at the establishment during Ghosh's tenure as principal.

All About The Case In Which Sandip Ghosh Has Been Arrested

Akhtar Ali, a former deputy superintendent at R.G. Kar Medical College and Hospital, had requested an Enforcement Directorate investigation into alleged financial irregularities involving Sandip Ghosh, who took over as principal in 2021. 

The Comptroller and Auditor General (CAG) had flagged these financial issues during the same period, with Ghosh reportedly failing to respond to multiple CAG reminders, raising concerns about possible attempts to hide information.

The CAG's audit revealed discrepancies in the procurement of medicines and equipment, which did not comply with state GST regulations. This non-compliance resulted in an excess expenditure of ₹1.3 crore. Following the introduction of GST, hospitals were directed to apply GST on all purchases, including those made under pre-existing contracts. Despite guidelines from the finance department on calculating the base price, R.G. Kar Medical College did not follow these rules, as highlighted by the CAG's findings. The college did not respond to the CAG's request for clarification, according to the health department.

Ghosh served as the principal of RG Kar Medical College from February 2021 until September 2023. During this period, he was transferred twice in 2023 but returned to his position within a month each time. He remained in office until the day a trainee doctor was allegedly raped and murdered.

Following the directives of the Calcutta High Court, the Central Bureau of Investigation (CBI) registered an FIR against Sandip Ghosh and three Kolkata-based private entities: Ma Tara Traders in Madhya Jhorehat, Howrah; Eshan Cafe at 4/1 Belgachia; and Khama Louha. On August 25, the CBI conducted an extensive search at Ghosh's residence in Beliaghata, Kolkata, in connection with the corruption cases.

In addition to investigating financial irregularities, the agency is also probing the rape and murder of a 31-year-old postgraduate trainee doctor that occurred in the early hours of August 9 at the seminar hall of the state-run hospital. The Enforcement Directorate has also filed a money laundering case to investigate the alleged financial misconduct at RG Kar Medical College during Ghosh's tenure and involving other individuals. 

What Are the Charges Against Sandip Ghosh?

The charges against Ghosh include Section 120B of the Indian Penal Code (IPC) for criminal conspiracy, Section 420 IPC for cheating and dishonesty, and Section 7 of the Prevention of Corruption Act, 1988 (amended in 2018), which pertains to the unlawful acceptance of gratification by a public servant.

The investigation was initiated following a petition by Akhtar Ali, who had requested an Enforcement Directorate (ED) probe into the alleged financial misconduct at the institution. Ali approached the high court amid widespread public speculation about whether the corruption at the college was linked to the recent death of the medical trainee, with rumours suggesting the victim might have known about the irregularities and threatened to expose them.

Ali had previously filed complaints with the state vigilance commission and the anti-corruption bureau against Ghosh, but these yielded little results, leading to his own transfer from the institution. 

In his plea to the high court, Ali accused Ghosh of various serious offences, including the illegal sale of unclaimed corpses, trafficking in biomedical waste, and awarding tenders to suppliers in exchange for kickbacks. He also claimed that students were coerced into paying between ₹5 to ₹8 lakh to pass their exams.