Maharashtra orders probes Rs 60 crore vaccine equipment tender irregularities

The Maharashtra Health Department has initiated a high-level inquiry into alleged irregularities in two major equipment tenders worth over Rs 60 crore. The tenders, issued by the Deputy Director of Health Services (Transport), Pune, in July 2024, were for the procurement of Ice Lined Refrigerators (ILRs) and Deep freezers used to store vaccines across the state.

According to a detailed complaint accessed by India Today TV, the tender process was marred by manipulation and overpricing. The complaint alleges that although the Health Department had sought and secured administrative approval for top-specification cold chain equipment featuring advanced technologies such as a rotomoulded body, remote temperature monitoring, and lifetime warranties, the tenders were floated and awarded for lower-specification products. Despite the downgrade in quality, the equipment was procured at prices comparable to or higher than those approved for high-specification items.

The approved budget per unit was Rs 3.84 lakh for ILRs and Rs 4.24 lakh for Deepfreezers, with requirements for 1,700 ILRs and 1,300 Deepfreezers. However, as per the complaint, the actual market cost of these products was significantly lower, approximately Rs 70,000 each. Yet, the tendered prices were Rs 3.05 lakh per ILR and Rs 2.45 lakh per Deepfreezer. Notably, both companies that won the contracts had listed their product prices on the WHO website as Rs 70,000 to Rs 80,000 per unit.

The complaint further states that multiple applicants were disqualified on technical grounds, leaving only two companies in contention. These two reportedly withdrew their bids for the alternate tenders, resulting in each company being the sole eligible bidder for one contract. This sequence of events raised concerns of possible cartelisation and alleged collusion with officials in the DDHS office.

Fourteen points of allegations have been raised in the complaint, including manipulation of the tendering process to favour specific companies, questionable disqualification of other applicants, and suspiciously fast-tracked payments. Although an initial audit cleared the DDHS officials and the companies involved, the complainant has challenged the findings and is considering approaching the Bombay High Court.

Interestingly, while the department claims that no payments have been released, the complaint alleges that large sums were already disbursed, despite pending deliveries or records of simultaneous deliveries at multiple locations on the same day.

Responding to the allegations, Dr Nitin Devmane, Officer on Special Duty to the Maharashtra Health Minister, confirmed the formation of a high-level inquiry committee.

"A high-level inquiry committee has been set up to probe the alleged irregularities, and we are awaiting the report from that committee. Once the Committee submits the report, as per the report, appropriate action will be taken," he said. He also added, "No payments for the two contracts have been released and won't be released till the inquiry report is tabled."

The inquiry committee, constituted by the Secretary of the Health Department, is currently reviewing the matter.

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