In 2018 Pradhan Mantri Jan Arogya Yojana was launched in Gujarat, to provide health insurance to the poor and vulnerable section of the society. Under this scheme a family can receive up to Rs.5 lakh annually for secondary and tertiary care hospitalisation. At the time of initiation of this project, there is no limit of the number of family members who can be added as beneficiaries. Gujarat Health Department and National Health Agency discovered that due to this loop hole of this scheme several people have included as beneficiary who are not actually belong to their family.

Since last July such type of fraud cases were reported and around 20,000 Ayushman cards across 27 district were cancelled by authority. Several police cases were registered against those fraudulent and the authority is still looking for similar cases.

Senior official from health department has confirmed, "Under Gujarat's Mukhyamantri Amrutam Scheme, a precursor to the PMJAY, the software could not register more than five members per family. In the central scheme, there is no such cap."