Lok Sabha Question No. 85 (STARRED), answered on 2019-02-08
Subject: Procurement of Drugs
Ministry: HEALTH AND FAMILY WELFARE
Asked by: RAVINDRA VISHWANATH GAIKWAD

## GOVERNMENT OF INDIA MINISTRY OF HEALTH AND FAMILY WELFARE

## DEPARTMENT OF HEALTH AND FAMILY WELFARE

## LOK SABHA STARRED QUESTION NO. 85 TO BE ANSWERED ON THE 8 TH FEBRUARY ,2019 PROCUREMENT OF DRUGS

## †*85. PROF. RAVINDRA VISHWANATH GAIKWAD:

Will  the  Minister  of  HEALTH  AND  FAMILY  WELFARE  be  pleased  to state:

- (a) whether the Government is aware of scams reported in procurement of dr under the National Rural Health Mission (NRHM) in Maharashtra during the la five years;
- (b) if so, the d etails thereof; and
- (c)  the  details  of  punitive  action  taken  by  the  Government  against  the  p involved therein?

## THE MINISTER OF HEALTH AND FAMILY WELFARE

## ANSWER (SHRI JAGAT PRAKASH NADDA)

- (a)to ( c) : A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 85* FOR 8 TH FEBRUARY , 20 19

(a) to (c)  As  per  the  information  received  from  the  State  Government Maharashtra, no such scam has been reported. However, in April, 2016 based on local newspaper reports and discussions in both Houses of Maharashtra Legisl allegations  of  Rs  297  cr medicine  purchase  scam  under  National  Rural  Health Mission were investigated by the State Government of Maharashtra. The enqu committee  under  Chairmanship  of  Gautam  Chatarjee,  Retd.  Additional  Chie Secretary, G overnmentof Maharashtra submitted its report observing that there ha been no irregularity in purchase of medicines .The information as received from the State Government of Maharashtra is at Annexure.

## Annexure

Public Health Department Maharashtra started free medicine scheme for health  facilities  under  Public  Health  Department  in  2014.  One  tender  noti 148 tenders for purchase of 430 types medicines with total cost of Rs. 297 was published in all the leading newspapers all over the country. This purchas was  under  the  free  medicine  scheme  and from  State  Funds  and  NRHM  funds. Purchase procedure was carried out by e - tender  and  purchase was approved by Central  Purchase  Committee  under  chairmanship  o f  Principal  Secretary , Public Health  Government  of  Maharashtra.  During  same  year,  National  Urban  Health Mission also received Rs. 42 Crores for medicine purchase to Urban Local Bod NUHM purchased 170 medicines worth Rs. 40.13 crores for Urban Local Bod ies by repeat order of NRHM tender rates.

2. In April 2016, one local newspaper published series of news with allega that  there  was  297  cr  medicine  purchase  scam  under  National  Rural  Heal Mission. Same issue was discussed in both houses of Maharash tra Legislature. One committee under chairmanship of Shri Bhagwan Sahai, Additional Chief Secreta was  established  to  enquire  into  the  matter.  This  committee  submitted  pri report saying that there are irregularities in purchase of medicine under and that need to be investigated in detail. Accordingly, second committee Chairmanship of Gautam Chatarjee, Retd. Additional Chief Secretary, G overnment of  Maharashtra was  established.  This  committee  submitted  report  on  19.8.201 with following infer ence:
- i. There were two steps in purchase of medicine. First step was purch from State and NRHM funds and second step was by repeat order from NUHM funds.
- ii. There is no irregularity in purchase procedure for both the steps.
- iii. For purchase from State and NUHM funds, demand generation, compilation, tender process, approval, payment, utllization, etc we per  State  Government  Guidelines  and  there  was  no  irregularity  at step.
- iv. For purchase of NUHM  medicines, demand  from  Urban Local  Bodies was not collected and compiled properly, therefore demand for medici was communicated wrongly by NUHM to Purchase cell.
- v. All the excess purchased medicines by NUHM was redistributed among Public  Health  Department  health  facilities,  therefore there  was  no wastage  of  medicine,  however,  State  had  to  spend  Rs.  73246/ - for redistribution of medicines.
3. The report was accepted by Government and tabled in both the houses Maharashtra Legislature. Based on this report, Departmental Enquiry w s i it ated against  then  Joint  Director  holding  charge  of  NUHM.  Presently  enquiry  is progress.
4. Above facts indicate that there was no scam or irregularity in purcha medicine. Regarding NUHM purchase only, there was no irregularity in purcha procedure  but  the  demand  and  supply  was  not  handled  carefully  by  concern officers.
5. Now demand generation is made online and through E - aushadhi software so that same irregularity should not happen again.

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