Multi-Level Scam in Mosquito Net Procurement Exposed by CBI
The CBI has filed an FIR over an alleged scam involving the inflated procurement of insecticide-treated mosquito nets by Hindustan Insecticides Ltd. The company secured a contract from the Central Medical Services Society but channeled it through intermediaries, leading to severe pricing discrepancies and a loss of Rs 6.63 crore.
- Country:
- India
The Central Bureau of Investigation has launched an FIR into a significant procurement fraud concerning mosquito nets. The nets, initially costing Rs 49 to Rs 52 each, were reportedly sold to the Central Medical Services Society at inflated prices ranging from Rs 228 to Rs 237 by Hindustan Insecticides Ltd, a public sector enterprise.
Hindustan Insecticides Ltd secured a Rs 29 crore contract from CMSS for supplying over 11 lakh Long-Lasting Insecticidal Nets for malaria control. Despite lacking manufacturing capacity, the company was the sole bidder and subcontracted the production to vendors, bypassing the lowest bidder, Shobikaa Impex.
This elaborate procurement chain allegedly caused CMSS a financial loss of Rs 6.63 crore while intermediaries profited. The FIR names several entities, including Mohinder Kaur Knitting Pvt Ltd and Directors Anand Samiappan and Balvinder Singh Tandon. Charges include criminal conspiracy and cheating under the IPC and the Prevention of Corruption Act.
(With inputs from agencies.)
Google News