Four individuals were arrested in Bengaluru for their involvement in a scam where they registered non-existent companies on the Employees State Insurance Corporation (ESIC) website and distributed fake ESI ID cards to 869 people, allowing them to receive subsidized medical treatment at ESIC and empanelled hospitals.
The accused, identified as V Sridhara (a security guard at Rajajinagar ESI Hospital), Ramesh (a canteen operator at the same hospital), former ESI staff member Shivalinga, and their friend Chandru (who worked at a private hospital in Sadashivanagar), are facing charges related to the fraudulent distribution of ESI cards. Police have also questioned two women, one of whom worked in the hospital’s accounts section, who are suspected of aiding the scam by procuring fake recommendation letters from doctors.
ESIC, a government-run social security agency, provides healthcare coverage to workers earning up to Rs 21,000 per month, with small salary deductions made for this facility. The accused took advantage of this system by creating fake companies about two years ago and registering fake workers. They charged each individual Rs 20,000 initially and then Rs 500 per month for continued service. From the Rs 500, they paid Rs 280 to the ESIC, keeping the remaining amount as profit.
The police investigation reveals that the scam ran for over two years, and while the exact financial loss to the government is yet to be calculated, it’s clear that the accused defrauded the ESIC of crores of rupees by providing fake individuals with access to healthcare services meant for genuine employees.
