Nagpur’s healthcare sector now finds itself in the crosshairs of the Income Tax (IT) Department as its Intelligence and Criminal Investigation Wing (ICIW) aims to map cash flows in hospitals across the region. Nearly 130 healthcare establishments, including multi-speciality hospitals, test tube baby facilities, and cancer treatment hospitals from the Vidarbha region, have been summoned to submit exhaustive financial records by IT’s Nagpur unit. Senior officials informed that the investigation seeks to expose whether high-value cash transactions are being fully reported under the Statement of Financial Transactions (SFT) framework. Under this mechanism, any payment of Rs 2 lakh or more must be recorded and submitted to the Income Tax Department along with the patient’s identity and relevant details. The department is scrutinising whether these submissions are complete, accurate, and timely.

 

“Despite the spread of digital payment and cashless platforms, cash continues to dominate. Lakhs of rupees are spent for high-cost procedures such as knee replacements, fertility treatments, and advanced surgeries,” an official explained. Preliminary analysis suggests that certain hospitals may be deliberately omitting some cases from SFT reporting. Hence, the IT officials have launched an intensive review of financial ledgers, vouchers, diagnostic reports, procedural paperwork, and ancillary records to detect inconsistencies. The official further said that notices under Section 133(6) of the Income Tax Act, 1961, have been dispatched. The department will cross-verify the collected information to ensure stringent compliance across the Vidarbha region. Sources confirmed that all major hospitals in Nagpur have been encompassed in the investigation.

 

Experts suggest that the probe could reveal systemic gaps in SFT compliance and highlight deliberate concealment of cash transactions in the healthcare sector. The officials anticipate that the findings will reinforce accountability mechanisms and send a stern message across the industry.

 

 

The IT officials are suspecting that some hospital administrations are secretly diverting the funds to other businesses to save the tax on the hospital’s income. The Chartered Accountants related to the hospitals are also under the scanner of the IT Deptt as the officials suspect that they played key role in the entire scam.