The irregularities, which dated back to 2010, saw connivance between the Ayurveda directorate staff and some government officials resulting in 800 medical officers (community health) receiving time-scales and financial up-gradation with retrospective effect.
The move had led to a loss of around Rs 200 crore to the state exchequer, a spokesman said here.
The Chief Secretary had constituted a three-member committee and asked it to submit a report.
When the CM was apprised about the issue, he directed stern action against the guilty, the spokesman said.
The CM has also ordered a vigilance probe into the incident, the spokesman added.
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