Maharashtra Health Department under scrutiny for vaccine Equipment Tender Irregularities

Mumbai: The Maharashtra Public Health Department has initiated an inquiry into allegations of irregularities related to a Rs 62-crore tender process for cold chain equipment intended for the storage of vaccines, according to a government official on Monday.

Following a request from the Union government last week, the department has been tasked with conducting a thorough investigation and submitting a report on the alleged irregularities, he said, news agency PTI reported.

This latest inquiry marks the second probe ordered by the health department within just one week. Previously, the department instructed the Maharashtra Medical Goods Procurement Authority (MMGPA) to investigate alleged irregularities related to a Rs 56-crore tender for medical equipment procurement.

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In the case of the cold chain equipment, allegations have emerged that the tender process was completed mere days before the announcement of last year’s Assembly elections, which were held in November. It is claimed guidelines were violated and the equipment was procured at prices four to five times above the market rate.

Responding to complaints, Nipun Vinayak, Secretary 1 of the health department, instructed the Commissioner of Health Services on June 2 to “undertake a detailed inquiry and act based on the inquiry report.” On April 18, an anonymous complainant reported alleged irregularities via the Centralised Public Grievance Redress and Monitoring System (CPGRAMS). In response, on April 25, the Union Ministry of Health and Family Welfare told the complainant that the state conducts its purchases using its own funds rather than central government money.

The central ministry said the grievance would be forwarded to the Mission Director (National Health Mission or NHM) and Maharashtra’s state extended programme on immunisation officer (SEPIO) for appropriate action.

The complaint alleged officials and contractors collectively defrauded the government to the tune of Rs 40 crore to 50 crore. The equipment was purchased at exorbitant prices while the tender terms appear to have been tailored specifically to favour two contractors, it said.

Despite raising these issues with officials concerned, the complainant noted that a contractor’s bill amounting to Rs 22 crore was settled by the end of March 31. The Deputy Director of Health Services (Transport), Pune, initiated tenders for ice-lined refrigerators (ILRs) and deep freezers on July 4 and 5, 2024, just before the assembly polls.

The complaint outlined numerous violations, asserting the eligibility criteria and mandatory terms of the tender were disregarded, along with flouting Central Vigilance Commission (CVC) guidelines, General Financial Rules (GFR) 2017, and the Maharashtra State Procurement Policy.

Both tenders were awarded at unrealistically inflated prices compared to market rates and Government e-Marketplace (GeM) prices, compromising national policy objectives by omitting the ‘Make in India’ clause, it claimed.

The irregularities included the original equipment manufacturer (OEM) and its reseller participating in the tender simultaneously; post-deadline import licence dates for contractors; the removal of the ‘Make in India’ condition; and neglecting the Maharashtra State Procurement Policy, which mandates preference for local suppliers meeting the lowest price criteria, according to the complaint.

Additionally, commitments concerning service networks and maintenance contracts appear to have been overlooked, it said.

The contract worth Rs 33 crore was awarded to Ashoka Sthapatya Pvt Ltd for the supply of ILRs, and another worth Rs 29 crore went to Rahul Distributors Pvt Ltd for deep freezers (total Rs 62 crore).

The purchase order prices of Rs 3,04,995 for ILRs (90,110 litres) and Rs 2,45,440 for deep freezers (200 litres) far exceed market and GeM portal prices (about Rs 80,000), indicating potential financial mismanagement and collusion, alleged the complaint.

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