Doctors at the well-known PGI hospital in Chandigarh were supplying patients poor quality medical equipment including pacemakers in a major fraud detected by the Central Bureau of Investigation (CBI).

The fraud was detected following raids last week on the government-run Post Graduate Institute of Medical Education and Research, popularly known as PGI Chandigarh, CBI spokesman S.M. Khan told.

PGI doctors were "fleecing patients by providing them inferior quality medical equipments, including pace makers," he said. The CBI seized equipment worth Rs. 10 million but there was no official record of their purchase.

"Raids were conducted at the institute's laboratory and cardiology department in association with the vigilance department."

He alleged that an additional professor and some surgeons were involved in buying inferior quality products at high rates on behalf of patients under their care.

"The doctors would recommend unauthorized agents and ask the patients to deposit cash with them. The agents would supply inferior material to the doctors. The doctors would hand over the materials to the patents."