Health Scam Exposed: ₹56 Cr Tender Fraud Rocks Maharashtra.

₹56 Crore Health Tender Scam Rocks Maharashtra

• Sprouts SIT Uncovers Medical Procurement Irregularities

• CVC Norms Violated in Offline Tender Submissions

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

A ₹56 crore tender scam has rocked Maharashtra’s Health Department, exposing severe irregularities, cartelization, and conflict of interest in medical equipment procurement. The Sprouts News Special Investigation Team (SIT) uncovered violations of CVC norms, inflated pricing, and compromised patient safety. A high-level probe and re-tendering have been urgently demanded.

In a shocking revelation, the Maharashtra Medical Goods Procurement Authority under the state’s Public Health Department is embroiled in a massive ₹56 crore tender scam. Tender number RT145, floated for the purchase of essential medical equipment, has come under scrutiny for grave irregularities, cartelization, and blatant disregard for procurement norms.

The Sprouts News Special Investigation Team (SIT) has found that this isn’t merely a case of financial misappropriation. It is a systemic failure that directly endangers the lives of thousands of patients depending on government hospitals across Maharashtra.

Offline Tender Submissions Violate CVC Guidelines

Unlike other states where e-tendering is the standard protocol, Maharashtra’s Public Health Department continues to accept offline submissions—a clear violation of Central Vigilance Commission (CVC) guidelines. In the RT145 tender, key documents from contractors were collected in physical form, raising concerns over transparency and tamper-proofing.

Recognizing the severity of the situation, the state government has initiated a probe. An official memorandum signed by Ashok Kayande, Additional Secretary, Health Department, directs the CEO of the Maharashtra Medical Goods Procurement Authority to conduct an internal inquiry and submit a detailed report to the state.

Cartelization, Conflict of Interest, and Inflated Bids

The tender aimed to procure vital medical devices including cell counters, microscopes, autoclaves, hemoglobin meters, test strips, lithotomy tables, and lamps. Out of five participating companies, only two were deemed eligible—both linked to the same manufacturer. This direct conflict of interest violates Section 3(d) of the Indian Competition Act, 2002, and clause 2.2.6 of the tender norms.

The two vendors, Healthlon Pharmaceuticals and Med Xpress Pharma, are both authorized distributors of the same manufacturer. Such a setup indicates a pre-planned cartel arrangement, potentially designed to eliminate real competition and fix inflated prices. The SIT investigation confirms this was not a coincidence, but a deliberate attempt to subvert a fair bidding process.

Missing Mandatory Certifications and Incomplete Documentation

Shockingly, both qualifying vendors failed to submit essential documents. These include proof of having executed ₹28 crore worth of similar work, client testimonials, and certifications from chartered accountants. Even more alarming, mandatory CDSCO certifications for devices such as autoclaves and microscopes were never provided.

Despite this, the technical evaluation committee cleared the bids, showcasing gross negligence or possible complicity. Sprouts News SIT has accessed internal files confirming that the tender committee disregarded basic compliance norms, thereby allowing technically non-compliant firms to be considered eligible.

Disregarded Objections, Favored Contractors, and Questionable Award

One disqualified vendor had formally raised objections with both the Directorate of Industries and the Health Appeals Authority. However, instead of addressing these concerns, officials rushed the financial bid opening, ultimately awarding the contract to one of the non-compliant vendors. This raises serious questions about procedural integrity.

The estimated value of the tender was ₹55.99 crore. The lowest bidder quoted ₹55.99 crore (just ₹3,942 below the estimate), while the second bidder quoted ₹56.75 crore—₹75.41 lakh higher. This narrow range indicates price fixing and is far above prevailing market rates. In some cases, prices were nearly 200–250% higher than usual.

This shows clear evidence of collusion and misuse of public funds.

Also Read: MEIL Implodes Amid Bitter Ownership Feud Between Founders.

Public Health at Risk Due to Deliberate Procurement Gaps

This is not just a financial scandal; it is a threat to public health infrastructure. The affected equipment is essential for diagnosing and treating patients, particularly in rural areas. When procurement is delayed or devices are of inferior quality, poor and vulnerable patients suffer the consequences—sometimes fatally.

Repeated scams within the Public Health Department highlight a deep-rooted culture of corruption and administrative apathy. According to Sprouts News Special Investigation Team (SIT), these incidents represent not just policy failures, but ethical failures at every level.

SIT Demands High-Level Inquiry and Re-Tendering

Sprouts News SIT strongly recommends a high-level inquiry, immediate cancellation of the tainted contract, and re-floating of the tender with strict compliance enforcement. Merely bureaucratic inquiries will not suffice. What’s needed is political will and accountability to bring the culprits to justice and prevent future misuse of health funds.

This scandal has stained the credibility of Maharashtra’s health system. Public trust can only be restored through decisive punitive action and systemic reform.

The SIT will continue to investigate and will soon release further documentation and a list of officials responsible for this ₹56 crore health tender scam.