Srinagar April 21: A nearly three-year-long investigation into alleged embezzlement under the Ayushman Bharat scheme at Sher-i-Kashmir Institute of Medical Sciences (SKIMS) has found no financial wrongdoing, according to official audits and internal findings.
Multiple audits conducted by the Jammu and Kashmir government between 2021 and 2025 concluded that no loss to the state exchequer had occurred. The inquiries, which stretched over 35 months, examined claims of misappropriation of funds within the premier tertiary care hospital in Srinagar.
Senior officials familiar with the matter said the prolonged investigation led to the suspension of three employees, who remained out of service for more than three years. Despite repeated scrutiny, auditors did not establish any evidence of embezzlement.
“The issue was not about recovery of funds or financial loss. It was a matter of reconciliation in accounts. Every audit reaffirmed that no money was siphoned off,”a senior official said.
Sources within the institution pointed to internal administrative disputes as a key factor behind the allegations. According to them, tensions over seniority and appointments within the pharmacy department may have contributed to the escalation of the issue.
“There was a struggle over leadership positions. In that process, certain officials became easy targets,” the source said, requesting anonymity due to the sensitivity of the matter.
The controversy had earlier gained public attention after reports surfaced alleging financial irregularities. Officials now say those reports were based on an incomplete understanding of internal accounting processes.
“The reports in the press created a perception of wrongdoing. However, subsequent inquiries found the claims to be untrue,. Even those reports acknowledged systemic issues, which indicates procedural gaps rather than individual misconduct,” the official added.
Officials also clarified why external anti-corruption agencies were not involved. As per procedure, such agencies are brought in only if internal committees detect serious financial lapses.
“In this case, internal audits did not find any evidence that warranted escalation to anti-graft bodies,” the official said.
Following the conclusion of the inquiries, the three suspended employees have now been reinstated. The staff also expressed appreciation for the incumbent Director of SKIMS, crediting the leadership for reviewing the findings and taking a decision based on documented evidence.
