Medical supplies company violates tender rules to help blacklisted firm

The Karnataka State Medical Supplies Corporation Limited (KSMSCL) is accused of violating its own tender regulations to favour a drug supply company which was blacklisted by other states.

According to a complaint filed with the chief ministers’ office, KSMSCL allegedly even delayed issuing a supply order for a tender, to provide enough time for the company to produce a court stay against the embargo.

The company is also accused of suppressing the fact that it was blacklisted - which barred it from participating in the bid as per tender conditions.

However, KSMSCL officials have dismissed the allegations, maintaining that the complaint was filed by those who failed to secure the tender.

A complaint registered earlier this month accused the KSMSCL of “corruption, favouritism and malpractice” in procuring essential drugs.

This was in connection with a tender awarded to an Uttar Pradesh-based firm, even though the firm was blacklisted in April this year by the Chhattisgarh Medical Supplies Corporation Limited.

Though the firm was blacklisted on April 12, the procurement order to the firm was awarded on April 13 by KSMSCL, the complaint alleged.

As the firm approached the courts, KSMSCL delayed issuing final orders of procurement till June 1.

“If a firm is blacklisted by any central or state government (agency), then such a supplier company should be blacklisted in KSMSCL and orders are to be cancelled.”

However, at KSMSCL procurement of drugs worth Rs 25 crore was kept on hold on purpose to benefit the firm, rather than re-tendering and procuring the drugs afresh, according to the complaint accessed by DH.

N M Nagaraja, managing director of KSMSCL denied the allegations made in the complaint.

“Chhattisgarh Medical Supplies Corporation has removed them from the blacklist. The company was blacklisted after we floated the tender. But the company went to the court and they were removed from the blacklist based on court order,” he said, adding that it did not affect the tender process.

The firm was blacklisted for not submitting a few documents and not because of spurious or low quality drugs, he said.

“Other companies have filed a complaint unnecessarily as they could not win the bid,” he added.