Gujarat hospital water tank fraud: ₹50.43 lakh billed, nothing built in Palitana
Synopsis
A government hospital in Palitana, Gujarat, had a ₹50.43 lakh bill submitted for a 2.55 lakh-litre underground water tank that was never built. Health Minister Praful Pansheriya, who discovered the gap during a personal inspection, has now ordered a police complaint, suspension proceedings against two engineers, and blacklisting of the contractor — a rare instance of a minister triggering accountability action through direct site verification.
Key Takeaways
Gujarat Health Minister Praful Pansheriya discovered a ₹50.43 lakh bill submitted for a hospital water tank in Palitana, Bhavnagar that was never constructed.
The approved underground tank had a capacity of 2.55 lakh litres ; no work was carried out at the designated site.
Police complaint ordered against Mehul Dave (In-Charge Executive Engineer) and N.V.
Kaliya (Deputy Executive Engineer), who submitted the bill.
Dharmanandan Construction , the Surat -based contractor, faces blacklisting proceedings initiated by the PIU.
Both engineers have been directed to be relieved of duties, with suspension and dismissal proceedings to follow as applicable.
Gujarat Health Minister Praful Pansheriya has ordered a police complaint and disciplinary action against two engineers after discovering that a 2.55 lakh-litre underground water tank — approved and billed for ₹50.43 lakh — was never constructed at a government hospital in Palitana, Bhavnagar district. The irregularity came to light during a ministerial inspection visit to the facility.
What the Minister Found
During his on-site visit to Palitana Hospital, Pansheriya found the designated site of the underground water tank completely bare — no construction had been undertaken. Despite this, a bill of ₹50.43 lakh had already been submitted to the higher office for approval. The Health Department confirmed that no work had been carried out at any stage of the project.
Officials Named, Action Ordered
Following a video conference with officials from Palitana Hospital and the Project Implementation Unit (PIU), Pansheriya directed that a police complaint be lodged against Mehul Dave, In-Charge Executive Engineer, and N.V. Kaliya, Deputy Executive Engineer — the two officials who had submitted the bill. He further ordered that proceedings be initiated to relieve both engineers of their duties, with suspension and dismissal to follow as applicable.
Contractor Faces Blacklisting
The PIU has been instructed to initiate proceedings to blacklist Dharmanandan Construction, a Surat-based contractor associated with the project. The firm had been engaged for the tank's construction but reportedly carried out no work at the site.
Minister's Warning on Public Fund Misuse
'No negligence, malpractice or irregularity in the use of public funds allocated for the state's healthcare services will be tolerated,' Pansheriya said. He emphasised the need for quality, transparency, and accountability in government healthcare development works. The Health Department added that strict action would be taken against individuals or agencies found negligent or involved in irregularities in government works.
Broader Accountability Push
The Palitana case is part of what the Health Department describes as ongoing oversight of infrastructure projects to ensure public funds are deployed responsibly and approved works are completed to prescribed standards. Notably, the fraud was uncovered not through routine audit but through a direct ministerial inspection — raising questions about the adequacy of existing supervisory mechanisms within the PIU. The case is among a growing number of alleged billing irregularities surfacing in Gujarat's public health infrastructure sector.
Point of View
Not an internal audit, to catch it. That is not an isolated lapse; it is a systemic failure of the PIU's supervisory chain. The minister's swift action is commendable, but the harder question is how many similar bills across the state's hospital network are quietly awaiting approval without any physical verification. Blacklisting one contractor and suspending two engineers addresses the symptom; reforming the pre-approval site-verification protocol addresses the disease.
NationPress
19 Aug 2026
Frequently Asked Questions
What is the Gujarat hospital water tank scam in Palitana?
A bill of ₹50.43 lakh was submitted for the construction of a 2.55 lakh-litre underground water tank at a government hospital in Palitana, Bhavnagar district — but the tank was never built. Health Minister Praful Pansheriya discovered the irregularity during a personal inspection of the facility.
Who has been held responsible for the Palitana hospital fraud?
Police complaints have been ordered against Mehul Dave, In-Charge Executive Engineer, and N.V. Kaliya, Deputy Executive Engineer, who submitted the fraudulent bill. Surat-based contractor Dharmanandan Construction faces blacklisting for failing to carry out any construction work.
What action is being taken against the officials involved?
Both engineers have been directed to be relieved of their duties, with proceedings for suspension and dismissal to be initiated as applicable. A police complaint against them has also been ordered by the minister.
What happens to Dharmanandan Construction?
The Project Implementation Unit (PIU) has been directed to initiate blacklisting proceedings against Dharmanandan Construction, the Surat-based contractor that was engaged for the tank's construction but reportedly carried out no work at the site.
How was the fraud discovered?
The irregularity came to light during a direct inspection visit by Health Minister Praful Pansheriya to Palitana Hospital. He found the designated site empty and subsequently convened a video conference with PIU and hospital officials to examine the bill and the roles of those who processed it.
