CBI sources said the then Director in Construction and Design Services P K Bhukesh, an engineer in UP government and alleged middleman D K Singh were arrested in connection with its probe in the alleged corruption in the upgradation of 134 district hospitals using central government funds.
Kushwaha, the then Secretary Pradeep Shukla among others are main accused in the case.
"It was revealed during investigation so far that officials of C and DS in connivance with private persons allegedly misappropriated and cheated 68 per cent of the total amount received by C&DS for the upgradation of 134 district hospitals under the NRHM, thereby causing a loss of Rs.7.94 crore to the government exchequer in the case," the agency had alleged in its charge sheet in the case.
The CBI had alleged that the former BSP minister and his close aide, former MLA R P Jaiswal, misused their official position to benefit local company Surgicoin Medequip Pvt Ltd.
"The matter pertained to upgradation of 134 district hospitals for an amount of Rs 13.4 crore under NRHM. It was alleged that the said work was given to Ghaziabad and Lucknow-based private firms without following any codal formalities and on the basis of bogus and forged documents," the CBI had said in a statement.
CBI sources said that during the investigation they found that of every Rs 100 allocated for hospitals, nearly Rs 68 was siphoned off by officials while the remaining Rs 32 was utilised in the project.
