Chandigarh to probe 29-year 'monopoly' by sole chemist at GMSH-16

Naina Mishra

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Chandigarh, September 9

Amid concerns over private chemists’ “nexus” in city’s government hospitals, the UT Health Secretary has ordered an inquiry into the allotment of a medical shop to a single chemist, who has been operating from the premises of Government Multi-Speciality Hospital, Sector 16, for the past 29 years through extension of licence by the hospital authorities.

operational since ’93

• Medical shop was allotted in 1993 to Sunil Kumar Jain, who has been operating it for past 29 years based on extensions and renewals
• Last extension was done in 2019 by orders of the Director, Health Services, for a period of five years (up to 2024)

‘Misled’ on vacant shop

• Health Secretary was misled on presence of a vacant shop on GMSH-16 premises
• On inspection, it was found chemist had encroached upon vacant shop
• Official concerned will be placed under suspension, disciplinary proceedings initiated

To break the monopoly of the sole chemist at the GMSH-16, it has been decided to add more medical shops to the facility. The existing medical shop was allotted in 1993 to Sunil Kumar Jain, who has been operating for the past 29 years based on subsequent extensions and renewals. The last extension was done in 2019 by the orders of the Director, Health Services, for a period of five years (up to 2024).

Health Secretary Yashpal Garg has sought a report on the allotment of the medical shop and its subsequent extensions and renewals by the GMSH-16 authorities.

There’s Possible nexus

Continuation of same licencee for a considerably long period has led to monopoly and possible nexus/conduit for certain undesirable activities or conduct.  —Yashpal Garg, UT Health Secretary

Garg said continuation of the same licencee for a considerably long period within the hospital premises had led to “monopoly and possible nexus/conduit for certain undesirable activities or conduct”. He has instructed the officials to ensure that instead of going in for extension/renewal, fresh e-tender process be adopted wherever the original or extended period of the licencee or leasee comes to an end.

The Health Secretary had been receiving complaints about rush at the “sole medical shop” at the GMSH-16. On inspection of the site, it was found the existing medical shop had encroached upon an adjacent vacant shop and the authorities had been “hiding” the matter for a long time.

“Every time, it was stated there was no vacant shop at the GMSH-16. In the interest of patient care, it was decided to utilise one of the vacant garages for setting up new shops. During inspection of the garage for the proposed new medical shop, it was found a vacant shop existed adjacent to the medical shop. The vacant shop had been encroached upon,” said Garg.

On inquiry, it was found around 12 to 15 years ago, an STD shop was functional there, but its premises had now been merged with an adjacent canteen. On further inspection, the vacant shop, besides being encroached upon, was found to be used through backdoor.

As the Health Secretary was misled on the presence of a vacant shop on the premises, orders have been issued to get the matter inquired. The official concerned will be placed under suspension and disciplinary proceedings initiated.

As the existing medical shop had encroached upon the former STD/PCO site, a show-cause notice for violations of the terms and conditions of the lease deed would be issued.

“A fair and transparent e-tendering process for two new medical shops will now be initiated and finalised by December. There should be specific clause in the tender document about minimum discount to be passed on to customers. Further, the licencee should be free to extend higher discounts. Another stipulation will be that no person/firm/company or family member will be eligible to operate more than one shop on the campus,” read the instructions.

Attempt to undermine Jan Aushadhi centres

With tendering process for Jan Aushadhi centres at GMSH-16 and GMCH-32 nearing completion, the UT Health Secretary has ordered strict action against those trying to undermine the centres. “If any medical shop or officer/official is found involved in any such activity, strict exemplary action should be taken. We need to provide all possible protection and promotion to kendras, especially during initial phase,” says the order.