New Delhi: After 20 years, Ex-MS GB Pant Hospital, absolved in graft case

It said the prosecution has not been able to prove that Jain had adopted illegal means or abused his official position by dishonestly showing favour to the firm and its director.

CBI had lodged a case in July 1997 alleging that Jain, who was the medical superintendent of the hospital from 1988- 1990, and store officer P K Banerjee, who has died, had conspired with Saigal to cheat the institution.

It alleged that they placed 35 orders on Directorate General of Supplies and Disposal (DGS&D) to purchase medical equipments from foreign suppliers, of which Consolidated Products Corporation Pvt Ltd was an Indian agent, without any requirement.

The two public servants dishonestly issued documents to purchase medical equipments from foreign suppliers to cause pecuniary advantage to Saigal and the firm, which imported huge quantities of medical equipments at exorbitant rates, the agency alleged.

During the trial, Jain claimed he had not committed any irregularity or discrepancy in making purchases for the hospital and that during his tenure, he followed all rules and regulations as prescribed by Delhi Government.

The firm and Saigal also denied having any role in the irregularities and claimed that the allegations were false.