10 years later, DVAC books four former ESI officials for procurement irregularities

NEW DELHI: The Directorate of Vigilance and Anti-Corruption (DVAC) registered a case against four former officials of the Directorate of Medical and Rural Health Services (ESI) over alleged irregularities in the procurement of Allopathy, Siddha, and Ayurvedic medicines during 2013-14 and 2014-15, more than a decade after the malpractices happened.

According to the FIR registered on September 8, the accused are Dr M Raju, formerly Director of Medical and Rural Health Services (ESI), G Jeeva, formerly Superintendent of the Store Section, and M Rakesh and N Nagalingam, both formerly assistant officials in the Store Section.

The case follows a preliminary inquiry based on a letter from the Director of Medical and Rural Health Services, in which it was found that medicines were procured by violating prescribed procurement procedures, resulting in financial loss to the government.

The FIR states that an audit by the Comptroller and Auditor General of India (CAG) identified irregularities in the procurement process. It specifically cited the purchase of Rub N Run Oil and Liver Tonic at prices much higher than those of equivalent medicines available under the Running Rate Contract or through Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Limited (TAMPCOL).

The alleged excess expenditure on these purchases amounted to Rs 1.59 crore, said the FIR, adding that several procurement-related files were found missing during a subsequent inspection.

The preliminary inquiry allegedly found that the officials placed purchase orders without following prescribed procedures and without obtaining necessary approvals or no-objection certificates.

The case has been registered under provisions of the Prevention of Corruption Act, 1988, and the Indian Penal Code. The investigation has been taken up by the Chennai City Special Unit-III.