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No new tender for sole chemist shop at Chandigarh’s GMSH-16 since 1993
Shop being operated by same firm for 29 years; monthly rent also stagnant at ₹3 lakh per month, compared to up to ₹1.5 crore for private chemist shops at other govt hospitals in the city
For 29 long years, the only chemist shop at Government Multi-Specialty Hospital (GMSH), Sector 16, has been operated by the same firm that has enjoyed multiple extensions and renewals without any fresh tendering.
Also, while the private firms at Government Medical College and Hospital (GMCH), Sector 32, and Post Graduate Institute of Medical education and Research (PGIMER) are paying monthly rents ranging from ₹8 lakh ₹1.5 crore, the rent for the shop at GMSH-16 has not crossed ₹3 lakh per month.
The shop was allotted to Sunil Kumar Jain on lease for only two years through an auction in 1993. While the first lease ended in 1995, the hospital authorities never floated a fresh tender and have been extending the lease every five years, with the latest extension occurring in 2019 – for up to 2024.
UT health secretary Yashpal Garg, who has ordered an inquiry into the continuation of the same licence for a considerably long period, said, “The chemist shop was allotted on monthly rent for two years and not long-term or perpetual lease, where nominal ground rent is paid annually. The lease was granted in form of licence, which cannot be converted into perpetual lease. However, multiple extensions have been allowed for the lease, leading to monopoly and possible nexus/conduit for certain undesirable activities or conduct.”
He added, “Since no fresh tender had been floated since 1993, I have sought a report on the allotment of the medical shop, and the subsequent extensions and renewals by GMSH-16 authorities. Instructions have been made to ensure that instead of going in for extension/renewal, a fresh e-tender process be adopted wherever the original or extended period of the licence or lease comes to an end.”
‘Got lease extension through proper channels’
On his part, Sunil Kumar Jain, who is running the chemist shop, said, “The lease has always been extended through proper channels and approvals. All rules were followed. Since the shop is on lease, new tenders could not have been floated for fresh bids.”
Hospital to get another chemist shop
The health secretary further said that the hospital authorities had been claiming that there was another vacant chemist shop at the hospital that can be allotted to break the monopoly. But on inspection, it was found that the existing medical shop had encroached upon the adjacent vacant shop.
“A show-cause notice will be issued to the chemist while the official concerned will be placed under suspension for misleading the authorities. For patients’ convenience, a new chemist shop will be opened at the vacant shop. Tendering for Jan Aushadhi stores at GMSH-16 and GMCH-32 is also nearing completion and will provide generic medicines at cheaper rates,” Garg said.
Only canteen also never re-tendered for 40 years
Apart from the chemist shop, the nearby canteen at GMSH-16 is also being run by a single private party for the past 40 years. While the Red Cross Society is responsible for running the canteen, it has sublet the lease to a private firm. “After the allottee died, his son surrendered the shop on August 31. Fresh e-tenders have already been floated for running the canteen,” the health secretary said.
As per probe by the health department, the man running the canteen was also associated with the firm running the sole chemist shop at the hospital.
