06/07/2026
It’s not a classic “scam” involving direct embezzlement of funds for fake construction, but rather a major administrative failure or “ghost hospital” anomaly in Madhya Pradesh’s government health system. A proposed 100-bed civil hospital in Indore’s Khajrana area has existed only on paper for about six years (approved in June 2020), with no land finalized, no building constructed (not a single brick laid), and no actual facility operating—yet 87 staff positions were sanctioned, appointments/transfers continued, and salaries were paid. 
Key Details of the Case
• Approval and Purpose: On June 23, 2020, the Madhya Pradesh government sanctioned a 100-bed civil hospital for Khajrana, a densely populated and rapidly growing area in Indore with over 3 lakh people and limited secondary healthcare access. The goal was to ease pressure on other overburdened government hospitals. 
• Current Status (as of July 2026): No plot of land has been fully acquired or possessed by authorities. No construction has started. The “hospital” exists only in official records, files, and government portals. 
• Staff and Salaries: 87 government posts (doctors, nurses, pharmacists, paramedical staff, etc.) were created and sanctioned. Staff have been appointed and transferred to this non-existent hospital over the years, including as recently as last month. These employees have been temporarily deployed to other facilities like Sanjeevani Clinics, PC Sethi Hospital, Hukumchand Hospital, and other Indore government healthcare centers. Reports mention around ₹3 crore in salaries paid over the period. 
• Reasons Cited by Officials: Delays in land identification, allotment, and physical possession. The District Collector has been asked to resolve land issues. Staff are being “adjusted” elsewhere to avoid vacancies. Some accounts note it evolved from a smaller urban Primary Health Centre plan to a 50-bed, then 100-bed facility. 
Political Reactions
• Opposition (Congress): They have called it a “major scam” and administrative failure. Former minister Sajjan Singh Verma demanded a high-level inquiry, questioning how appointments, transfers, and payments could continue for a hospital that doesn’t exist on the ground. 
• Government Response: Health officials and ministers (e.g., Deputy Chief Minister Rajendra Shukla) acknowledge the delay due to land issues but defend the sanctioning of posts and deployment of staff to other facilities. They emphasize that the project is still intended to proceed once land matters are sorted. 
This has sparked widespread media coverage, public outrage, and discussions about bureaucratic inefficiency, poor planning, and potential misuse of public resources in Madhya Pradesh’s health department. Residents in Khajrana continue to rely on distant or overcrowded hospitals. 
It highlights systemic issues like poor coordination between departments (health, revenue/land, etc.), persistence of “paper projects,” and lack of accountability in tracking sanctioned posts against physical progress. No arrests or specific corruption charges (like fund siphoning for non-existent construction) have been reported in the coverage—it’s framed more as mismanagement than a deliberate fraud ring. Investigations or inquiries may follow due to the political pressure.
In a bizarre administrative anomaly that has left the local health department scrambling for answers, a proposed 100-bed civil hospital in 's Khajrana area has been fully functioning "on paper" for six years, despite not having a single brick laid, or even a finalized plot of land.
Six years ago, state government announced the setting up of a modern civil hospital in Khajrana.
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