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The Print
07-07-2025
- Business
- The Print
PSU sells Rs 52 insecticide-treated mosquito nets to govt for Rs 237 each: CBI FIR
It was the sole bidder despite lacking its own manufacturing capacity, quoting rates of Rs 228-Rs 237 per unit. The PSU — Hindustan Insecticides Ltd (HIL) — secured a Rs 29 crore contract from the Central Medical Services Society (CMSS) in 2021-22 for the supply of more than 11 lakh Long-Lasting Insecticidal Nets (LLINs) for malaria control over public procurement platform, Government e-Marketplace (GeM). New Delhi, Jul 7 (PTI) The CBI has registered an FIR in an alleged procurement scam wherein insecticide-treated mosquito nets, priced at Rs 49 to Rs 52 per piece, were reportedly procured and sold to the CMSS under the Union health ministry at inflated rates of Rs 228 to Rs 237 per piece by a public sector undertaking, officials said on Monday. HIL went on to subcontract the work to empanelled vendors, providing raw materials and chemicals while vendors undertook production and insecticide treatment. Bypassing the lowest bidder, Shobikaa Impex, the officials at HIL initiated a procurement chain that ultimately channelled the order through Mohinder Kaur Knitting Pvt Ltd, a company with no manufacturing capacity of its own, the FIR alleged. According to the FIR, the actual production was executed by VKA Polymers, which sold nets to JP Polymers — a closely linked firm — at Rs 49 to Rs 52 per unit. By the time the product reached HIL via this chain of intermediaries, the price had ballooned to Rs 87 to Rs 90 per unit. HIL, in turn, supplied the nets to CMSS at Rs 228 to Rs 237 per piece, raising suspicions of price manipulation and kickbacks. VKA Polymers and JP Polymers are interlinked entities managed by family members — Anand Samiappan and M. Sakthivel, respectively– the FIR alleged. It added that Balvinder Singh Tandon, Director of Mohinder Kaur Knitting, coordinated the execution of HIL's purchase orders through his company. The inflated pricing funnelled through multiple companies allegedly caused a loss of Rs 6.63 crore to CMSS, while HIL and its intermediaries profited from the markup. In its FIR, the agency has named Mohinder Kaur Knitting Pvt. Ltd, its Director, Balvinder Singh Tandon, VKA Polymers Pvt. Ltd and its Director, Anand Samiappan, JP Polymers & Nets and its partner M. Sakthivel, besides unidentified officials of HIL India Ltd and the Central Medical Services Society. The CBI has invoked sections of criminal conspiracy and cheating under the Indian Penal Code, as well as provisions of the Prevention of Corruption Act, against them. PTI ABS RHL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
30-05-2025
- Business
- Time of India
Expedite probe into procurement of mosquito nets: HC to CBI
Madurai: Madras high court recently directed the CBI to expedite investigation into an alleged scam committed by Hindustan Insecticides Limited (HIL), a public sector company, in the procurement of Long Lasting Insecticidal Nets (LLINs) to the Jharkhand govt and Central Medical Survey Services Society (CMSS), New Delhi in 2022. The court was hearing the petition filed by A R Malaiyappasamy, president of the Karur HDPE Filament and Bednets Manufacturers Welfare Association. According to the petitioner, HIL, New Delhi, a public sector company, had obtained a contract from the Jharkhand govt and CMSS in New Delhi, for supply of mosquito nets for public use. While CMSS procured more than 40 million LLINs, the Jharkhand govt had floated a tender in 2022 for procurement of 48,000 LLINs. The petitioner alleged that the HIL had procured LLINs from shell companies at a low cost and supplied it at a higher cost. Alleging that a fraud had been committed by HIL, the petitioner association had lodged a complaint to the CBI in March 2023. The petitioner had filed the present petition in 2024 seeking a direction to the CBI to expedite inquiry into the complaint. Earlier, the court had directed the CBI to ascertain as to whether the shell companies through which, HIL said to have procured the nets, are having any manufacturing facilities to manufacture LLINs and regarding the actual cost of production and the cost which has been shown by HIL as procurement cost. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Descubra o valor de qualquer imóvel — basta digitar o endereço! Valor da casa | Anúncios de pesquisa Saiba Mais Undo Pursuant to the earlier order, the CBI submitted an interim report stating that LLINs were purchased at the lower cost from a shell company which was given purchase orders for 9.31 lakh LLINs. However, the shell company had the capacity to manufacture 75,000 nets per month, as per the report of HIL itself. Justice B Pugalendhi observed that the interim report submitted by the CBI reveals that there are certain prima facie materials available in the complaint of the petitioner and therefore, it needs to be prosecuted. Hence, the judge directed the CBI to proceed with the investigation and conclude the same as expeditiously as possible. The petition was disposed of.
