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Home > News > India News > Article > CWG medical scam just got bigger

CWG medical scam just got bigger

Updated on: 17 August,2010 08:14 AM IST  | 
Astha Saxena |

One company that was to supply equipment doesn't have a registered office, the other was blacklisted when it bid for the tender

CWG medical scam just got bigger

One company that was to supply equipment doesn't have a registered office, the other was blacklisted when it bid for the tender

The CWG's can of worms is getting bigger with new scams relating to supply of equipment and services for the


Games surfacing with each passing day.






The two companies - Lord Krishna and Mangalam Medicaments - have already backed out of their commitment to supply equipment ranging from stethoscopes and scoop stretcher to ultrasound machines.

Fake address
Lord Krishna had given 15/34 Geeta Colony in east Delhi as its registered office, but when MiD DAY reached the place it was found to be a residential apartment.
When neighbours were asked, some told MiD DAY that no such company by the name of Lord Krishna operates out of the place as it was a "strictly residential" area.

"We have been living here for the last eight years. No such company operates out of here," said a man who stays near the address given by Lord Krishna, requesting anonymity.

The family living in flat number 15/34 first refused to talk to this correspondent but when she mentioned the name Lord Krishna, the woman admitted that letters in the name of the company are received by the family every now and then but there is "no registered office of the company".

"My husband knows the details but this is a residential apartment and not the office of any company," said Mamta Dua, resident of flat no. 15/34.
Several sister concerns of Lord Krishna have already been blacklisted by the government.

Black sheep
While Lord Krishna had given a fake address, the other supplier M/s Mangalam Medicaments had a Central Bureau of Investigation inquiry pending against it after gross irregularities were found in the tender.
Top officials confirmed that the company has a history of malpractices.

Shady past
One of the members of the Central Procurement Agency (CPA) set up in 2005 had refused to sign the technical bid because the conditions and the specification of the products were framed allegedly to favour Manglam Medicaments.

In the light of this, a committee was formed to look into the matter in the year 2006 which recommended a CBI probe.

Reportedly, these companies were under the scanner as they had allegedly secured the order for supplying the medical equipment for Commonwealth Games despite quoting exorbitant rates.
On August 13, MiD DAY had reported about their backing out of the deal for supplying the necessary equipment. The firms had reportedly written to the Delhi government on August 5 that it would not be possible for them to supply the equipment.

However, the Delhi government has now decided to debar and blacklist these companies.
"Both the companies will be debarred and blacklisted and a new tender will be floated for the supply of medical equipments," said Rajendra Kumar, secretary, Department of Health, Delhi government.

Though the exact amount of the contract for procurement of medical equipment is not known, sources in the Health Department say it is worth several crores as the hospitals in the city were being upgraded to meet any emergency during the CWG, when lakhs of people are expected to visit the city.u00a0 The list of these hospitals includes all prominent names including AIIMS, Safdarjung Hospital, RML Hospital, GTB Hospital and several others.u00a0

The medical apparatus was to be used for emergency services, including cardiac failure, injuries, various functions in the OPD and Operation Theatre.u00a0 In a letter, a copy of which is with MiD DAY, Directorate of Health Services, Delhi, has written to all these hospitals not to accept any equipment from these two firms as they have shown their inability to provide the same.

Scam update
u00a0
The Other Side

The bidders just need to fulfill the required specifications to get a certain tender. We do not look into their backgrounds or check details like office address etc. If a company is duly registered, it can bid for a tender.u00a0
- Rajendra Kumar, secretary, Department of Health, Delhi government.

The high-level meeting was held on Monday at the Maulana Azad Medical College under the aegis of the Directorate of Health Services (DHS) to discuss the new rate contact list regarding Lord Krishna and Mangalam Medicaments, who have refused to supply medical equipment for Commonwealth Games.

The meeting was attended by the medical superintendents of several government hospitals and Venue Medical Officers for the Games and the Director, DHS.u00a0

The DHS has declared that all government hospitals will have to follow the rates agreed upon by the directorate, whether it is a case of Central Procurement Agency (CPA) or Commonwealth Games.
DHS director S Bhattacharjee confirmed the development but refused to comment on it.
More dirt

Even 48 hours before Commonwealth Games Organising Committee (OC) chairman Suresh Kalmadi directed his subordinate M Jeychandren to release payments for A M Films UK Limited, the company did not have any director or employees.
The decision of the OC to hire this little-known firm to supply outdoor display units for the October 29, 2009, Queen's Baton Relay inauguration in London without any proper contract and subsequent release of payment is now under investigation.
A key figure emerging in the probe is Ashish Patel - better known as Ash Patel - the only shareholder of A M Films and several other obscure firms. In fact, he has been a director or secretary in seven different companies, but A M Films seems to be the only functional firm.
Documents from the Companies House, the UK government's official registrar of companies, show that A M Films UK Ltd was without any director for a period beginning September 9 to October 22. It had a paid-up capital of ufffd1 and one share held by Ash Patel. In other words, it was pretty much a one-man shop.

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