Olaparib to Dapagliflozin: Alleged Overpriced Drug Procurement Scam Surfaces at Rajasthan Hospital

According to the recent media report by Bhaskar English, documents reviewed during the investigation indicate that medicines approved through tenders at substantially lower prices were procured only in limited quantities, while large-scale purchases were later allegedly made under “emergency” procurement at Maximum Retail Price (MRP), leading to a massive rise in expenditure.

Founded in 1961 and affiliated with Rajasthan University of Health Sciences, the institution recognised by the National Medical Commission was reportedly authorised to procure medicines worth around ₹45 lakh. However, official records cited in the investigation allegedly indicate that medicine purchases exceeded ₹3 crore within just eight months.

The documents reviewed during the probe reportedly showed that Olaparib 150 mg, used in cancer treatment, had a tender-approved price of ₹83 per tablet. Despite the approved rate, the same medicine was allegedly procured under MRP-based purchases at ₹446.44 per tablet.

One bill referenced in the investigation allegedly revealed that 210 tablets of Olaparib 150 mg were purchased at the inflated rate of ₹446.44 per tablet, resulting in a payment of more than ₹2.99 lakh.

The report further alleged that a medicine available in the market for nearly ₹13,000 was ultimately purchased for close to ₹39,900.

According to the investigation, hospital invoices separately displayed the approved tender rates in coloured markings, where Olaparib 150 mg was shown at the sanctioned rate of ₹83 per tablet.

Apart from Olaparib, several other medicines were also allegedly procured at prices significantly above approved tender and market rates.

Dapagliflozin 10 mg reportedly carried a tender-approved rate of only ₹0.88 per tablet, but was allegedly purchased through emergency MRP procurement at ₹17 per tablet. The investigation claimed that more than 50,000 tablets were being purchased every month at these higher prices.

Likewise, Palbociclib 75 mg reportedly had an approved procurement rate of ₹78 per tablet, but was allegedly bought at ₹357.63 per tablet. While only around 300 tablets were reportedly sourced through approved tenders, over 2,000 tablets were allegedly procured every month at elevated MRP rates.

The report also alleged irregularities in the procurement of Taurine + Acetylcysteine tablets. Although the approved rate was ₹1.86 per tablet, the hospital allegedly purchased between 35,000 and 40,000 tablets at ₹5.84 per tablet, while only 5,000 tablets were procured from authorised suppliers.

Further allegations involved life-saving medicines sourced from Nivati Healthcare, which were reportedly procured at rates three to five times higher than prevailing market prices.

Enzalutamide 40 mg, which allegedly had a market price of ₹155.50 per tablet, was reportedly purchased at ₹888.92 per tablet. The investigation further claimed that the same medicine was available through PSML Drug at nearly ₹802, yet procurement was allegedly carried out at an MRP approaching ₹3,500.

Tender guidelines reportedly mandated that medicine prices remain aligned with the lowest available market rates.

The investigation also pointed towards suspected irregularities in the tender award process. According to the report, a company offering a 68.70% discount on MRP secured the tender, despite an earlier bid allegedly offering a significantly higher discount of 80%.

The report additionally alleged that departments intentionally raised very small purchase demands with approved suppliers despite having much larger requirements. For instance, departments allegedly needing around 50,000 tablets placed orders for only about 2,000 tablets through authorised vendors. Once the limited stock was exhausted, medicines were allegedly procured from the open market at much higher MRP rates under the label of emergency purchases.

As per procurement norms, suppliers are reportedly required to maintain at least two months’ medicine stock within hospital stores.

Reacting to the allegations, hospital superintendent Dr Vipin Sagar acknowledged that the issue of excessive pricing had come to the administration’s notice. “The firm has been issued a notice. If higher rates have been charged, recovery of the excess amount will be made,” he told Bhaskarenglish.