Massive ₹100 Cr Health ATM Procurement Scam Exposed
• No Tender, Just Loot: HAL ATM Deal Exposed
• Sprouts SIT Uncovers Health Department Irregularities
• Overpriced Health ATMs Bypass Rules, Drain Tribal Funds
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Investigation Team (SIT) has uncovered a ₹100 crore scam in Maharashtra’s Health Department involving overpriced Health ATM machines purchased from Hindustan Antibiotics Ltd without tender. The deal violated GEM and CVC norms, misused tribal welfare funds, and raises serious questions about former minister Tanaji Sawant’s role and departmental collusion.
Sprouts News Investigation Team (SIT) has uncovered a major financial and procedural scam within the Maharashtra Public Health Department. The department has reportedly purchased Health ATM machines worth nearly ₹100 crore from Hindustan Antibiotics Ltd (HAL) without inviting any tender, violating procurement norms and central vigilance guidelines.
Health ATMs Bought at Inflated Prices Without Tender
Documents accessed by the Sprouts SIT reveal that the Health Department procured over 1,500 Health ATM machines from HAL, priced at approximately ₹6.10 lakh per unit. Shockingly, the same equipment is listed on the Government e-Marketplace (GEM) portal for only ₹4.48 lakh.
This blatant price inflation and direct purchase without tender bypass the mandatory Government Resolution (GR) dated 1 December 2016 issued by the Maharashtra Industries Department, as well as guidelines issued by the Central Vigilance Commission (CVC) regarding public procurement.
Despite these violations, the department hastily executed the procurement using funds reserved under the Mines and Minerals Development fund, marking a misuse of funds originally allocated for tribal and mining-affected regions.
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Former Health Minister’s Role Under Scanner
The trail begins with a letter dated 28 November 2022, written by HAL’s Maharashtra head N.T. Hanchate to the then Public Health Minister Tanaji Sawant, proposing the supply of Health ATMs. Records indicate that subsequent actions by the department were taken on the “verbal and written instructions” of the minister’s office.
The department then directed all District Health Officers (DHO) and Zilla Parishad (ZP) offices to assess their need for the HAL Cloud Clinic – Health ATM systems. Based on received demands from 34 ZPs, a proposal was prepared for the supply of 1,504 machines to Primary Health Centres (PHCs).
However, an internal circular dated 6 December 2022 from the Health Department itself confirmed that the necessary diagnostic services and medical devices were already available through previous procurement. Despite this, further purchase orders were placed, raising serious questions of intent and accountability.
Questionable Technical Standards and Lack of Approvals
Adding to the controversy, the HAL-supplied machines have not been evaluated for technical suitability, nor do they carry any utilisation certificates or regulatory clearances as mandated for medical equipment. The Health Directorate has not issued any technical validation or price benchmarking for these devices.
The supplier’s own quotation to the department dated 2 January 2023 mentions a unit cost of ₹5.37 lakh (inclusive of taxes), still significantly higher than market value. Moreover, the equipment lacks certification by any recognized medical device regulator or standards body.
Nexus Between Health and Mining Officials Alleged
Sources reveal that the department tapped into the District Mineral Fund (DMF) under the pretext of improving healthcare access in tribal regions. However, this fund—meant exclusively for welfare of mine-affected populations—was diverted without scrutiny.
According to insiders, officials from the District Health Offices and District Mining Offices, in collusion with HAL, carried out these purchases by sidelining the mandated procurement procedure, causing a potential financial loss exceeding ₹100 crore.
Districts such as Nandurbar, Bhandara, Ratnagiri, Washim, Gondia, Hingoli, Nanded, and Sangli are among those where the machines have been deployed under suspicious circumstances.
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Minister Denies Approval, Demands Probe
Current Health Minister Prakash Abitkar has distanced himself from the deal, stating that no such tender proposal was ever placed before him and that his office has issued no directives or approvals for the same. He assured that if any irregularities are found, a detailed inquiry will be launched and strict action will be taken against the guilty.
Sprouts SIT Demands Accountability and Blacklisting
The Sprouts News Investigation Team (SIT) urges the state government to initiate a full forensic audit into this procurement, blacklist the supplier HAL, and hold accountable the public servants involved in this irregularity.
This case highlights the systemic failure of checks and balances in government procurements, especially those involving public health infrastructure and tribal welfare funds.
