State govt to probe ₹79-crore smoke detector deal for hospitals

A government resolution (GR) issued on Tuesday revealed that smoke detectors were being procured for nearly ₹9.43 lakh per unit.

Mumbai: Maharashtra’s medical education and drugs department has launched an inquiry into alleged financial irregularities after a government resolution (GR) issued on Tuesday revealed that smoke detectors were being procured for nearly ₹9.43 lakh per unit, approximately 20 times the market price.

A government resolution (GR) issued on Tuesday revealed that smoke detectors were being procured for nearly ₹9.43 lakh per unit. (Pic for representation/Getty Images/iStockphoto)

The total price for the 839 units to be purchased has now come up to ₹79.1 crore, raising serious questions about the procurement process and the sole supplier classification granted to the product.

The GR sanctioned the purchase of 839 units of Detex smoke detectors for three hospitals: Sassoon General Hospital, Pune (350 units), KEM Hospital, Mumbai (136 units), and Solapur Super Speciality Hospital (353 units) from a single company.

“We are examining the complaint. If allegations are found true, we will cancel the administrative approval,” said Dheeraj Kumar, secretary of the medical education and drugs department. “Meanwhile, we are issuing orders to the Directorate of Medical Education and Research (DMER) not to issue a purchase order pending inquiry.”

The investigation began after RTI activist Vijay Kumbhar wrote to chief minister Devendra Fadnavis and the DMER secretary on Wednesday, flagging the issue.

“Each unit has been charged at a rate of about 20 to 30 times over the market price, resulting in unnecessary expenditure of over ₹75 crore. There is a need for an immediate inquiry into this matter, suspension of the procurement, and action against the culprits,” Kumbhar wrote in his letter.

According to his complaint, the government’s decision classified the smoke detector as a “sole or proprietary” item, a tag that allows the state to bypass competitive bidding through tenders.

This makes the product a unique item that cannot be purchased elsewhere or has no replacements. “Even if we consider the same technical specifications, the price is completely unreasonable compared to equivalent products available in the market,” he said.

Citing market prices, Kumbhar noted that standard smoke detectors are priced between ₹25,000 and ₹35,000, while advanced hospital-grade models range between ₹40,000 and ₹60,000, with an additional 15–30% discount for bulk orders exceeding 300 units. “In such a case, the unit price should not exceed ₹50,000,” he added.

Kumbhar estimated that if the state purchased the detectors at a realistic market rate, the total expenditure would have been between ₹3.3 crore and ₹4.2 crore. He also pointed out that despite mentioning “provisional rates” in the GR, the department approved the purchase without verifying the market rate. “We will wait until the secretary takes action. If not, we will have to legally challenge this,” he added.

The activist has demanded that the state immediately suspend all payments and installations until the inquiry is complete, constitute a high-level committee, including representatives from the Comptroller and Auditor General (CAG), and verify market prices through Maharashtra’s portal for tenders.

“When our public hospitals struggle for staff, medicines, and lifesaving equipment, such actions are corrupt, said social activist Chetan Kamble. “Public money is not anyone’s personal property. Citizens deserve full accountability in every single government purchase.”

Kamble said this wasn’t the first instance of questionable procurement. “All officials involved must be held accountable,” he added.