CHANDIGARH: The Punjab government has given an undertaking in the Punjab and Haryana high court to probe the alleged irregularities into the purchase of Covid-19 care kits, but the issue before the HC included allotment of bids in favour of a company that does not even have a drug licence.
As per the documents placed before the HC, Grand Way Incorporation, the Ludhiana-based firm that was allotted the tender for supplying the drugs and other items to the Covid-19 infected patients as per the state’s policy, does not have any licence to supply drugs.
However, the firm had used the licence of another, Narang Pharma Distributors to supply the kits.
“We have categorically raised the issue before the HC that the firm that has been allotted the bid does not even have the licence for drug supply, which even was one of the conditions mentioned in the letter issued by the state for approving the tender in favour of the beneficiary firm, Grand Way,” said senior advocate Chetan Mittal while arguing the petition that questioned the alleged irregularities in the allotment of the contract to Covid-19 care kit supplier firm before the HC.
Firm chosen to supply Covid kits dealt in garments: ProbeMittal added that if any firm without a licence to supply drugs was allowed to participate in the tender process and was even allotted the contract, there may have been many more such firms who should also have been permitted to participate and there were chances that they might have supplied these items at much lower rates than the current bidder.
Meanwhile, an inquiry revealed that the firm, which was chosen to supply the Covid-19 care kits by the Punjab government, is a registered firm mainly dealing with garments.
An examination of documents revealed that the department of health and family welfare, state health society, Punjab had accepted the bid of M/s Grand Way Incorporation, Ludhiana and issued a purchase order on April 20 for the supply of 50,000 Covid-19 care kits at the rate of Rs1,226.40 per kit for a total amount of Rs 6,13,20,000 (Rs 6.13 crore).
In the purchase order, the department had listed12 conditions to be complied with by the beneficiary firm, including the copy of the drug licence.
Alist of specifications of the Covid-19 care kit informing about the items to be included in the kit was also attached with the purchased order.
The department issued another purchase order on May 7 asking M/s Grand Way Incorporation, Ludhiana to supply 1,50,000 kits at the rate of Rs 1,338.40 per kit for a total amount of Rs 20,07,60,000 (over Rs 20 crore).
This purchase letter also included the condition to provide the drug licence of the supplier of drugs.
However, as per RTI-sourced information received on May 25 from director, National Health Mission (NHM) Punjab, the beneficiary firm M/s Grand Way, which was allotted the bids for the supply of Covid-19 care kits, had submitted the drug licence of Narang Pharma Distributor, Ludhiana to comply with the condition of the purchase order.
Significantly, the pharma firm whose licence was supplied by the firm getting contract for Covid-19 care supply was not part of the bidding process.