The Central Bureau of Investigation, in coordination with Naval and Army authorities, conducted joint surprise checks at Indian Naval Hospital (INH) in Mumbai's Colaba area and Armed Forces Medical Stores Depot in Kandivli on Friday after receiving information of irregularities in transactions at the two installations.

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According to officials, medicines were allegedly being procured from local dealers on higher rates instead of getting them from approved rate contract dealers or original manufacturers, which is a violation of the stock policy.

According to sources, six CBI teams along with the defence vigilance officers went to the installations and the surprise check continued late till evening. Sources added that the team had recovered records of both the establishments and investigating officers are currently scrutinising the accounts.

CBI officials told dna that further checks might be undertaken if any discrepancies in the accounts are noticed by the investigating team.