Tender process for cold chain equipment: Maharashtra health dept orders probe into ‘irregularities'

Indian Express

4 hours ago

Maharashtra's Public Health Department has ordered an inquiry into the allegations of irregularities in the Rs 62-crore tender process for cold chain equipment for the storage of vaccines.
The Indian Express had reported last week that the Union government has asked Maharashtra's Public Health Department to conduct a probe and submit a report on the allegations.
This is the second inquiry ordered by the state's Public Health department in the span of one week.
Last week, the department had directed Maharashtra Medical Goods Procurement Authority (MMGPA) to probe and submit a report on the alleged irregularities in awarding a tender of Rs 56 crore for the purchase of medical equipment.
In the cold chain equipment case, it is alleged that while the process for the same was completed days before the announcement of the Assembly polls last year, the tender guidelines were violated and the equipment were purchased at four to five times above the market rate.
Based on the complaints received, Nipun Vinayak, Secretary 1 of the Public Health department, directed the Commissioner, Health Service on June 2 to 'undertake a detailed inquiry and take action on the basis of the inquiry report'.
On April 18, the complainant, requesting anonymity, had complained about the alleged irregularities through the Centralised Public Grievance Redress and Monitoring System (CPGRAMS). Following the complaint, the Ministry of Health & Family Welfare (immunisation section) on April 25, wrote to the complainant that the state purchases cold chain equipment by using state funds and not central government funds. The ministry had also sent the letter to the Maharashtra government.
'However, a copy of your grievance is being transferred to the Mission Director (NHM) and SEPIO, Government of Maharashtra with the request to take appropriate action in the matter. Action taken may be communicated to the petitioner directly, under intimation to this ministry,' the letter sent to the complainant and the state government read.
The complaint alleged that the officials and contractors collectively cheated the government of Rs 40 to 50 crore.
It stated that not only the equipment were purchased at four to five times the open market price, but also alleged that the terms of the tender were framed to benefit two specific contractors to ensure cartelisation.
It further said that despite bringing this matter to the notice of the senior officials, the contractor's bill of Rs 22 crore was paid by the end of March 31.
Deputy Director, Health Services (Transport), Maharashtra, Pune had issued tenders for the purchase of Ice-Lined Refrigerators (ILRs) and Deep Freezers on July 4 and 5, 2024, just before Assembly polls.
'The process was found to have flagrantly violated the eligibility criteria and mandatory conditions of the tender. The Central Vigilance Commission (CVC) guidelines, General Financial Rules (GFR) 2017 and Maharashtra State Procurement Policy were flouted,' the complaint said, adding irregularities such as incomplete and fake documents were provided and it was found in the technical evaluation process.
Both the tenders were awarded at unrealistic prices compared to the market and Government e-Marketplace (GeM) rates.
The national policy objective was also compromised by removing the 'Make in India' clause.
The alleged irregularities include: original equipment manufacturer (OEM) and its reseller participating in the same tender; import license date of the contractor was post-tender deadline; the mandatory Make in India condition under the General Financial Rules (GFR) 2017 was removed by the technical committee after the pre-bid meeting; despite Maharashtra State Procurement Policy giving preference to local supplier if he or she matched L1 (lowest) price by giving 50 per cent order was kept aside; service network issue was sidelined and no legal service agreement for Comprehensive Maintenance Contract; Annual Maintenance Contract and availability of spare parts for 10 years was presented and state's legal opinions had gone against the contractors twice.
The complaint mentioned that the contract worth Rs 33 crore was awarded to the contractor company Ashoka Sthapatya Pvt Ltd for the supply of Ice-Lined Refrigerators (ILRs) and a contract worth Rs 29 crore was awarded to the company 'Rahul Distributors Pvt Ltd' for the supply of Deep Freezers.
'The purchase order prices of Rs 3,04,995 for ILRS (90,110 litres) and Rs 2,45,440 for Deep Freezers (200 litres) are much higher than the market rate and GeM portal price (approximately Rs 80,000). This indicates financial mismanagement and collusion,' the complaint added.