Commission Recommends Criminal Prosecution, Blacklisting of Firms, and Recovery of Excess Payments
New Delhi : The report by a commission led by retired High Court judge John Michael D’Cunha has exposed significant procedural irregularities and possible corruption in COVID-19 procurement activities under the Directorate of Medical Education (DME) during the BJP government’s tenure. The 351-page report, which covers purchases amounting to over ₹918.34 crore between 2019-2023, points to a lack of transparent bidding, inflated costs, and contract manipulation across multiple equipment procurements, including CT scanners, baby incubators, and defibrillators.
Key Findings and Allegations
1. Procurement without Quotations and Overpricing:
- The report highlights that many purchases were made without proper quotations or price checks, resulting in inflated costs. Baby incubators valued at ₹5.5 lakh per unit were purchased without market rate verification, despite the estimated government rate being only ₹1 lakh.
2. Defibrillators’ Procurement Violations:
- A total of 253 defibrillators were purchased at a cost of ₹14.5 crore. Despite contract terms stipulating a penalty for delayed delivery, the entire payment was made without deductions for delays. Moreover, the rejection of a lower bid due to “upgradeability” concerns was found baseless, favoring the second-lowest bidder and leading to extra costs for the state.
3. Price Disparities in CT Scanner Purchases:
- The commission noted “blatant illegalities” in CT scanner procurement, observing price inconsistencies across purchases made through different channels. While some units were procured at ₹4.92 crore each, others were inexplicably purchased at rates as high as ₹6.1 crore, resulting in a loss of ₹8.55 crore to the exchequer.
Recommendations
The report calls for criminal prosecution against involved officials, blacklisting several implicated companies, and the recovery of over ₹90 crore in excess payments made to suppliers. Additionally, a departmental inquiry has been recommended for DME officials who bypassed administrative approvals and engaged in non-transparent practices, which contributed to significant financial losses.
The findings highlight a serious need for accountability in emergency procurement processes and suggest reforms to prevent such malpractices in the future.
