CBI Files FIR Against Former Lok Nayak Hospital Officials for Procurement Irregularities
The Central Bureau of Investigation (CBI) has filed an FIR against the former medical director, former chief medical officer, and the proprietors of two private firms, accusing them of serious irregularities in the procurement of medicines and medical equipment at Lok Nayak Hospital, Delhi. These actions are said to have resulted in significant financial losses for the government.
The FIR, which was registered on July 30, names Dr. Suresh Kumar, the former medical director of the hospital, Dr. Hem Prakash, the former chief medical officer and procurement officer, along with Suresh Kumar Chaudhary, the owner of Adison Equipment Company, and Mayank Parashar of SR Surgical, another supplier of medical equipment.
The CBI’s initial investigation revealed that between 2018 and 2021, SR Surgical, in alleged collusion with Dr. Hem Prakash, supplied branded medicines to the hospital despite there being no such requirement from the relevant departments.
The FIR mentions, "The inquiry shows that undue benefits were given to Adison Equipment Company by Dr. Suresh Kumar and other unidentified officials by extending the rate contract with no justification."
According to the CBI, the procurement process involved purchasing substandard equipment at higher prices, even when better-quality macerators were available at lower rates. This resulted in a financial loss to the government and an unwarranted gain to Adison Equipment Company.
The investigation also revealed that between April 7, 2021, and September 16, 2022, the hospital purchased medicines worth Rs 32.23 crore from SR Surgical. Of this, Rs 25.17 crore was spent on branded medicines and Rs 7.05 crore on generic medicines, meaning 80% of the purchases were branded, according to CBI findings.
The agency raised concerns over how Adison Equipment Company continued to supply goods even after their rate contract expired in 2020. In 2017, the hospital had invited an open tender for procurement, with five firms participating. Adison Equipment and Faith Biotech Pvt Ltd were selected as the lowest bidders and awarded a contract that ran from January 29, 2018, to January 28, 2020.
However, the investigators found that after the contract expired, Adison Equipment continued to supply goods for more than a year, without any new tenders being issued.
The FIR noted, "No fresh open tender was invited, and Adison Equipment Company was allowed to continue supplying goods from January 29, 2020, to July 13, 2021, without any justification."
The FIR also points out that the Lok Nayak Hospital authorities did not provide any valid reason for not inviting a fresh tender before the original contract expired in January 2020.
