Hyderabad: Rs 200 cr scam unearthed in ESI hospitals

Hyderabad: The Vigilance and Enforcement (V&E) wing of the state unearthed Rs 200 crore scam in ESI hospitals which procured the medicines at a higher price.

After a probe was conducted by the department on the contracts given to the firms for supply of medicines to dispensaries and ESI hospitals for the 2016-17 and 2018-19 financial years, the V&E authorities initiated action against ESI director Dr C Devika Rani and five others for being involved in the scam.

Devika Rani had allegedly transferred the money illegally to the Benami firms and claimed to have paid bills of Rs 200 crore without actually supplying the medicines.

The ESI had procured several medicines for an exorbitant price. For instance, Lactulose syrup (200ml) priced at Rs 74.20 was obtained by ESI at Rs 260.

It is learned that indents were given to the firms by communicating over phone and orders were sent through an ordinary post. All the three quotations accepted during tender are said to be owned by a single-family.

However, a drug procurement committee should initiate the entire proceedings pertaining to the drug requirement, but the probe at the beginning of the year found that no such committee was formed.

The director also kept the joint director aside from the drug purchase committee and no committee on local purchases and tender scrutiny were formed to identify the pre-bid process.

The Vigilance officials also failed to identify the firms as they were shut down after supplying the medicines to the hospitals. The officials caused loss to the government by purchasing drugs at a price of their will through local purchase.