Now, GMSH-16 slaps show-cause notice on chemist debarred by PGIMER

The chemist was allotted the new shop at GMSH-16 based on the highest bid of ₹17 lakh per month, while under the tender terms, a blacklisted or debarred firm cannot participate in the tendering process

A day after the chemist, who was allotted the new medical shop at Government Multi-Specialty Hospital, Sector 16, in October at ₹17 lakh per month, was debarred from participating in new tenders for a year by the Post Graduate Institute of Medical Education and Research (PGIMER), the UT health department on Saturday served the firm a show-cause notice.

The firm has been told to reply to the show-cause notice by 5 pm on November 7. (HT File Photo)

In the notice to Gurpreet Kaur of M/S Garg Pharmacy, the principal medical officer of GMSH, said, “Since your firm has been debarred by PGIMER for a year, you can explain as to why your highest bid should not be rejected and the allotment not be withdrawn. The reply can be submitted by 5 pm on November 7. If no reply is submitted, it will be presumed that you have nothing to say in the matter and an appropriate decision will be taken without any further notice to you.”

Under the terms and conditions for running a chemist shop at GMSH, a blacklisted or debarred firm cannot participate in the tendering process. Further, the bidder is required to submit an affidavit stating that the individual/firm/companies are not debarred or blacklisted by any department of the Union/state government or any autonomous institute and that “no partner or shareholder, directly or indirectly connected with the applicant has been debarred or blacklisted by any department of union government/state government/autonomous institute”.

Second-highest bidder also found in the wrong

According to Clause 25 of the bid document for the chemist shop, if the highest bidder backs out, offer will be made to the second-highest bidder to take over the shop at the quoted rate of the highest bidder.

However, in the present case, even the second-highest bidder, Sanjay Dhall, has been found to have been debarred by PGIMER for two years in 2019. To participate in the GMSH shop’s bidding, Dhall submitted a false affidavit claiming to have received no debarred notices from any hospital.

As such, here too, a notice has been issued. “It was found that the highest bidding firm has been debarred. The competent authority is contemplating to cancel their licence and as per the terms and conditions of the tender document, if H-1 (highest bidder 1) backs out, then offer shall be made to the second-highest bidder (H-2) to take over the shop/space at the quoted rates of H-1, i.e. ₹17,01,000 per month...”

“However, the office has received a communication regarding the debarment of your firm from PGIMER too. Though your debarment period might have been over, as per the tender document, you have concealed this material information and submitted an undertaking/affidavit that you have never been debarred or blacklisted. This seems a clear case of concealment and misrepresentation about the material fact/information. You must clarify the aspect of previous debarment/blacklisting and concealment of this material information in your affidavit that was submitted along with the bid documents,” the notice added.

The notice further added, “Only after satisfactory clarification, you are subject to submit your consent to match the bid amount offered by the highest bidder ( ₹17.01 lakh per month). The reply shall be submitted by 5 pm on November 7.”

UT health secretary Yashpal Garg said, “The matter is being examined as per the terms and conditions of the tender. Though the second-highest bidder can be allotted the tender, there is a complaint against him for concealing previous debarment. The third-highest bidder seems to be ready to pay the monthly rent of ₹17.01 lakh, but there seems to be no provision to offer the tender to H-3. The committee is examining the matter and if no solution is available as per the tender provisions, we may go for fresh bidding. But whatever decision is taken will be fair and transparent.”

New chemist shop at GMSH: Rough ride so far for UT

September 8: UT health secretary Yashpal Garg inspects GMSH-16 and finds the only chemist shop there being run by a single firm for 29 straight years through multiple extensions and renewals, and at a minimal rent as compared to prevailing market rates

September 10: UT plans to set up five new chemist shops in city hospitals, including another at GMSH-16

October 20: UT opens tenders and allots new chemist shop at GMSH-16 to the highest bidder at a monthly rent of ₹17.01 lakh, which is around seven times more than the ₹2.5 lakh rent paid by the existing chemist shop

November 3: PGIMER debars highest bidder—Gurpreet Kaur of M/S Garg Pharmacy, citing that the firm vacated the shop at PGIMER before the agreed upon date

November 3: Second-highest bidder Sanjay Dhall of Medicare firm also found to have been debarred by PGIMER for two years in 2019. Yet, the firm participated in bidding by submitting a false affidavit to GMSH-16, claiming “no debarred notices from any hospital”

November 5: UT issues show-cause notice to both firms, seeks reply by November 7.