Multi-crore scam: CBI books 2 former Lok Nayak Hospital officials, 2 firms

The Central Bureau of Investigation (CBI) has lodged an FIR against the former medical director and the former CMO of Lok Nayak Hospital, Delhi, and proprietors of two private firms, alleging serious irregularities in the procurement of medicines and consumables, causing losses worth crores to the government exchequer.

The FIR, lodged on July 30, has named Dr Suresh Kumar, former medical director of the hospital, Dr Hem Prakash, who served as the chief medical officer and procurement officer during the period, Suresh Kumar Chaudhary, proprietor of Adison Equipment Company, and Mayank Parashar of SR Surgical, another company that deals in medical equipment.

According to the CBI, an initial enquiry revealed that between 2018 and 2021, SR Surgical, in alleged collusion with Dr Hem Prakash, supplied branded medicines to the hospital despite no such demand from the departments concerned.

The FIR states, “The enquiry prima facie reveals that undue benefit/favours were given to Adison Equipment Company by Dr Suresh Kumar, MD and other unidentified officials of Lok Nayak Hospital by extending the rate contract of Adison Equipment Company from time to time without any justification.”

According to the CBI, the procurement involved purchasing inferior-quality equipment at a higher price, despite the availability of superior-quality macerators at lower rates, thereby causing a wrongful loss to the government exchequer and an undue gain to Adison Equipment Company.

The hospital procured medicine worth Rs 32.23 crore from SR Surgical between April 7, 2021, and September 16, 2022. Out of this, branded medicines accounted for Rs 25.17 crore and generic medicines for Rs 7.05 crore, meaning nearly 80 per cent of the purchases by value were branded medicines, the CBI findings revealed.

The agency has also raised concerns over the manner in which Adison Equipment Company was allowed to continue supplying goods after its official rate contract expired. In 2017, the hospital floated an open tender for equipment procurement, with five firms participating. Adison Equipment Company and Faith Biotech Pvt Ltd were declared L-1 vendors, and a rate contract was issued to them for the period between January 29, 2018, and January 28, 2020.

But investigators say after the contract expired, Adison continued to supply goods for over a year without any fresh tender being floated.

The FIR stated, “…no fresh open tender was floated and undue extension was continuously given to Adison Equipment Company starting from January 29, 2020 till July 13, 2021 without any justification.”

“No reason has been given by the LNH Authority with regard to not inviting a fresh tender before the date of expiry of the existing tender i.e. January 28, 2020,” the FIR noted.