Cold Chain, Hot Scam!

• Vaccine Funds Looted in Maharashtra

• Fake Bills, Real Payouts: Health Tender Scam Exposed

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

Sprouts News Special Investigation Team (SIT) has uncovered a major scam in Maharashtra’s Public Health Department involving overpriced cold chain equipment for infant vaccines. Crores were paid on fake and incomplete bills, violating tender norms. Despite complaints, supplementary payment requests continue. SIT demands a high-level probe and criminal action against offenders.

A Sprouts News Special Investigation Team (SIT) has uncovered shocking irregularities in the procurement of cold chain equipment meant for storing infant vaccines by Maharashtra’s Public Health Department. The probe reveals that payments worth crores of rupees were disbursed based on forged, incomplete, and inflated bills, bypassing established financial and procedural norms.

Despite multiple complaints, departmental officials have continued to push supplementary budget demands to settle remaining dues. Experts and lawmakers are now calling for a high-level inquiry, demanding immediate suspension of pending disbursements and strict action against all involved parties.

Contents

Cold Chain, Hot Scam!

Procurement at 4X Market Rates, Favoritism in Tender Allocation

The scandal centers on the procurement of Ice Line Refrigerators (ILRs) and deep freezers, initiated by the office of the Deputy Director, Health Transport Services, Pune. These units, critical for storing vaccines for infants, were purchased at rates nearly four times above the prevailing market price, a fact already revealed in earlier reports.

The tender process, as per documents accessed under the Right to Information Act, was conducted in blatant violation of the Competition Act, 2002 (Section 3D). Competitive bidding was bypassed, and price envelopes of alternate bidders were not opened, clearly benefiting a select few vendors—primarily Rahul Distributors and Ashok Sthapatya. Internal communications and documents substantiate this collusion.

As per contract conditions, the awarded suppliers were to deliver and install all cold chain units across public health centers within 150 days. However, by March 31, 2021, a large portion of the equipment was yet to be delivered or installed, violating multiple terms of the purchase order.

Crores Paid Despite Delays, Defective Deliveries, and Violated Terms

Shockingly, despite the gross delays and breach of contract terms, the department still disbursed crores of rupees to the favored contractors. In several cases, deliveries were made post-deadline, making the payments not only irregular but legally void under procurement norms.

Furthermore, there is no record of quality checks conducted on the delivered equipment. Given that this equipment is essential for storing life-saving infant vaccines, lack of inspection reflects criminal negligence on the part of procurement and supervisory officers.

The Sprouts News SIT has also confirmed that technical evaluations were tampered with under political and internal pressure. Committee members were allegedly coerced into approving substandard or incomplete documentation. Notably, the committee chose to ignore the legal objections raised by the Law and Judiciary Department, which had clearly pointed out discrepancies in contractor submissions.

Whistleblowers Silenced, Reports Manipulated to Hide Violations

In a glaring instance of cover-up, MLA Sana Malik (NCP) and MLA Sanjay Kelkar (BJP) had raised formal objections with the Health Minister, demanding cancellation of the irregular tender. Yet, both the fact-finding and inquiry reports were manipulated before submission—effectively shielding the guilty and tarnishing the image of the administration.

Despite multiple red flags, the department astonishingly submitted supplementary budget requests to clear remaining payments, triggering widespread outrage. Legal experts and watchdog bodies are now urging the Maharashtra government to halt all further disbursements until a full-fledged probe is completed.

Sprouts SIT Recommends Criminal Action Against Contractors and Officials

The Sprouts News Special Investigation Team (SIT) recommends immediate legal action against vendors Rahul Distributors and Ashok Sthapatya, as well as their affiliated manufacturer partners, who are believed to be complicit in submitting fake or incomplete documentation.

Moreover, departmental officers—including those who misused their authority to alter evaluation outcomes or ignore legal advice—should be booked under the Prevention of Corruption Act and blacklisted from future government procurements.

The SIT has submitted its findings to multiple oversight bodies and is preparing a formal complaint to the Vigilance Commission and CAG (Comptroller and Auditor General of India).

Also Read: Ujjwal Nikam Faces Backlash as Tambadi Accused Walk Free.

Health Tender Scam Exposed in Maharashtra

A Deeper Crisis in Maharashtra’s Health Procurement System

This cold chain procurement scam is believed to be just the tip of the iceberg. Sources suggest several other tenders across the Health and Transport wings may have followed a similar pattern of collusion, overpricing, and fraudulent billing.

Given the model code of conduct for elections from June to October 2024, experts urge that all procurement and disbursements be put on hold until detailed audits are completed.

The Health Secretary, Dr. Nipun Vinayak, has received a formal memorandum demanding:

•A re-tendering process that is open, competitive, and transparent

•Equal opportunity for all certified suppliers

•And immediate suspension of all pending payments until a comprehensive inquiry concludes

Time for Reform and Accountability

The Sprouts News SIT reiterates that the public health procurement process must be made transparent, accountable, and tamper-proof. When vaccine storage equipment meant to save infant lives becomes a vehicle for financial fraud, it is not just a policy failure—it is a humanitarian betrayal.

This case demands urgent attention not just to punish the guilty but to prevent systemic rot. Sprouts News will continue to track developments and publish verified findings as this high-impact investigation unfolds.