Maharashtra’s Public Health Department on Monday launched an inquiry under the allegation of irregular processing of a tender of Rs 62 crore for cold chain equipment intended to store vaccines, reported the PTI.
The Union government made this request last week following which the department has started conducting an investigation and submitting a report on the alleged misconduct.
Within a week this investigation marked the second probe launched against the health department. Earlier this week, the Maharashtra Medical Goods Procurement Authority (MMGPA) investigated the alleged discrepancies in a Rs 56-crore medical equipment procurement tender.
According to these allegations, the tender process was completed a few days before the announcement of last year’s Assembly elections which were held in November. It is claimed that guidelines were violated and the equipment was procured at prices four to five times above the market rate.
Acting on the complaints, Nipun Vinayak, secretary 1 of the health department instructed the Commissioner of Health Service on June 2 to conduct a detailed investigation and take necessary action.
Earlier, on April 18, an anonymous complaint was lodged through the Centralised Public Grievance Redress and Monitoring System (CPGRAMS), emphasising on the suspected irregularities. In response, on April 25, the Union Minister of Health and Family Welfare clarified that the procurement in question was funded by the state government, not the Centre. The ministry stated that the grievance would be forwarded to the Mission Director of the National Health Mission (NHM) and the State Extended Programme on Immunisation Officer (SEPIO) in Maharashtra for further action, reported PTI.
The complaints alleged that the officers and contractors are collectively involved in defrauding the government of Rs 40 to 50 crore. The complaints say that the equipment was purchased at exorbitant prices while the tender term favoured profits for two contractors.
Despite concerns being raised, a payment of Rs 22 crore to one contractor was reportedly cleared by March 31. The Deputy Director of Health Services (Transport), Pune, had floated tenders for ice-lined refrigerators (ILRs) and deep freezers on July 4 and 5, 2024, just ahead of the Assembly elections, raising further suspicion.
The complaint alleges several violations, including disregarding the eligibility and mandatory criteria in the tender, flouting Central Vigilance Commission (CVC) guidelines, General Financial Rules (GFR) 2017, and Maharashtra’s State Procurement Policy. It further claims that the ‘Make in India’ provision was intentionally removed, compromising national policy goals.
Notably, the complaint highlights irregular practices such as the participation of both the original equipment manufacturer (OEM) and its reseller in the same tender, import licenses dated after the tender deadline, and neglecting local supplier preferences mandated under state procurement norms.
Key contracts were awarded to Ashoka Sthapatya Pvt Ltd (Rs 33 crore for ILRs) and Rahul Distributors Pvt Ltd (Rs 29 crore for deep freezers). The purchase order rates, Rs 3,04,995 for ILRs (90,110 litres) and Rs 2,45,440 for 200-litre deep freezers, were roughly four times the standard market and GeM rates, indicating possible collusion and financial mismanagement, the complaint alleges. Maintenance and service network requirements were also reportedly ignored.
(With inputs from PTI)