Rs 7 cr sanitary pad scam: Patiala-based firm under scanner

Vishav Bharti

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Chandigarh, May 5

A Patiala-based firm, GM Traders, and some officials of the Department of Social Security, Women and Child Welfare have come under the Vigilance Bureau (VB) scanner for allegedly supplying 2.45 crore sanitary pads worth Rs 7 crore to anganwadis during the tenure of previous Congress government.

Norms flouted

• The purchase committee held a meeting on May 23, 2021, and decided to distribute nine lakh sanitary pads. Within 48 hours, nine lakh packets were received from Gujarat
• Though the rate contract with the supplier was valid till May 2021, the purchase committee placed a huge order on August 11, 2021, and the rate contract was extended after that

Looking at the address of the warehouse, absence of feedback from the beneficiaries, lack of record of vehicles used to supply the pads, the VB has been trying to ascertain whether these were supplied or not as there’s no record related to the inspection of the stock.

In order to give benefit to GM Traders, the Controller of Stores allegedly in connivance with the supplier put a condition that the first preference would be given to the MSME units of Punjab, second preference to supplies/tenders of Punjab having permanent GST registration number in the state. After exhausting the supply capacity of the MSME units/tenders of Punjab, the supply order would be given to the outside MSME units/tenders.

Despite this condition, Royal Touch Handloom, Pathankot, became the L-1 supplier, but they were disqualified on the ground that they could not fulfil the conditions of the procurement, so the order was given to a Gujarat-based MG Hygiene through GM Traders.

Earlier, GM Traders had supplied low quality learning kits to the department due to which several officials were chargesheeted.

Ironically, procurement was done by forming a committee of officials who were working on a contract and dealing with this scheme only.

Ideally, the committee for such a large-scale purchase should have been formed under the Director, Additional Director, Joint Director, Deputy Director and Deputy Controller Finance and Accounts of the department.

The VB noted that the purchase committee held a meeting on May 23, 2021, and decided to distribute nine lakh sanitary pads and placed an order on the same day. And within 48 hours, nine lakh packets were received from Gujarat.

Though the rate contract with the supplier was valid till May 2021, the purchase committee placed a huge order on August 11, 2021, and the rate contract with the firm was extended after that.

In February 2022, the payment of Rs 7.2 crore was cleared by the department by flouting the rules.

Moreover, the officials concerned were asked by the Chief Secretary to make purchase through Government e Marketplace (GeM) portal, but they didn’t put up a file.

Rajinder Mittal, owner of GM Traders, said the government lab tested the material and checked the quantity. “We are ready to face any penalty if they can establish any compromise in quantity and quality.”

“In fact, we were blackmailed by a deputy director, who sought Rs 50 lakh bribe for releasing the payment. We not only refused to pay the bribe, but also lodged a complaint with the Vigilance in Patiala against the official concerned in September. This is just an attempt to divert attention from our complaint,” he said.