In an effort to curb corruption, defence authorities have detected "gross misappropriation of funds" in two hospitals empanelled with the military veterans' medical scheme.
In one case, it emerged that the person shown to be admitted in the hospital in Amritsar was found to be in New Delhi.
"As soon as the irregularity came to the notice of the inspecting authorities, an inquiry was ordered by the authorities concerned and they found the allegations to be correct. Formal action is being initiated against the hospital," Defence sources said here.
In the other case, it was found that the number of patients admitted under the ECHS facility were exaggerated whereas the actual figure of patients was very low, they said.
Inquiry against the erring hospital has been initiated and prima facie, allegations have been found to be correct, the sources said.
After a number of cases of corruption were brought to the notice of the government, Chief of Defence Staff General Bipin Rawat during his stint as Army Chief had initiated measures to enhance transparency and remove any possible corruption in the scheme.
It is also believed that due to nexus of officials and some hospitals, exaggeration in number of patients admitted, number of medical investigations and allotment of cases to particular hospitals was being done to misappropriate funds.
The sources said that the ECHS and Defence Ministry authorities would continue to work towards enhancing transparency in the health system started in April 2003.
( With inputs from ANI )