Health officials booked for buying drug at higher rates

The CBI has lodged a case against unknown officials of the state Directorate of Health Services (DHS) for allegedly entering a criminal conspiracy with officials of a private firm to purchase a medicine on exorbitant rate.

The CBI has lodged a case against unknown officials of the state Directorate of Health Services (DHS) for allegedly entering a criminal conspiracy with officials of a private firm to purchase a medicine on exorbitant rate.

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The purchase of the drug, Meropenem, on a higher rate from the firm, Astra Zeneca Pharma India Limited, allegedly caused a loss of R10 crore to DHS, said a CBI source.

The CBI lodged an FIR against unknown officials of DHS’s Central Procurement Agency and an Okhla-based pharmaceutical firm’s director and others under sections of the Prevention of Corruption Act.

According to the FIR, the accused DHS officials had concluded a Rate of Contract with the private firm for the supply of Meropenem (one gram) in 2009 at R1,530 (plus VAT) per vial. “In furtherance of conspiracy, the firm had submitted a false affidavit that none of the health facilities in public sector was being supplied Meropenem at a rate lower than what it had quoted to DHS. This was a false claim, but it had helped the firm to bag the supply contract eventually,” said a CBI source.

Later, a DHS official issued a notice to the firm, asking it to supply the medicine at a higher rate and directing it to return Rs 7.5 crore to DHS to cover the latter’s losses. The accused DHS officials, said the source.