Rs 650 crores AYUSH Department scam unearthed: Mahajan

Lack of Accountability and transparency in procurement and services has led to big scams in the country, alleged Dr Virender Mahajan president of Federation of AYUSH Drug Manufacturers India. Dr Mahajan who has developed one of the most effective herbal drugs.

 He said the Department of AYUSH, Ministry of Health & Family Welfare after the allocation of Rs 650 crores on August 13, 2009 by Cabinet Committee on Economic Affairs issued a directive vide No: F.No.T-12016/17/2008- DCC (AYUSH) dated June 9, 2010 to all State Health Secretaries and Directors AYUSH to make procurement from Public Sector Undertakings which is open violation of the Apex Court orders.

Information under RTI vide No: R-14012/02/2012 IMPCL (Vig) dated July 29, 2012 AYUSH Department has  revealed Government has not issued any order regarding over ruling of Apex Court Judgment and Union Cabinet Order regarding purchase preference tom Public Sector Undertakings. The amount was huge and the supply condition by these Undertakings were poor because number of Undertakings such as Karnataka Antibiotics & Pharmaceutical Ltd & Rajasthan Drugs & Pharmaceutical Ltd do not have their manufacturing units, it was revealed by AYUSH Department under RTI information vide No: T.12016/17/2008-DCC (AYUSH) dated 22.08.2012 which states “Inspection was conducted on 26.04.2010 & 05.05.2010 but nothing was found regarding manufacturing of AYUSH Drugs in their premises”.

Both these companies being Public Undertakings joined the fray to loot the exchequer with both hands, these companies managed drugs from other sources and after pasting the label of Undertakings supplied to Government at exorbitant Rates. Central Government Health Scheme in Reply to RTI vide No: F.No;4-6/07-CGHS/AMSD/2265 dated 21.08.2012 stated it has procured drugs worth Rs 16774905 from the IMPCL directly. CGHS has also released a list of 152 items in favour of the company for procurement on Nomination basis on 24.10.2011 Dr Virender Mahajan who has petitioned the case against Department of AYUSH, Union Ministry of Health and Family Welfare regarding undue favour to Public Sector Undertakings and patronizing substandard drugs at the cost of exchequer, The state High Court has disapproved the Government Procurement Policy which was against the Judgment of Apex Court and issued necessary directions which are self explanatory, Mahajan said adding that the Central Vigilance Commission has also registered a complaint regarding such procurement and investigation is going on. [Source]

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