CBI books drug firm for causing loss to health dept -Governance Now

CBI books drug firm for causing loss to health dept

The company got medicine supply contract through dubious means

Yash Vardhan Shukla | February 27, 2012

The Central Bureau of Investigation has registered a case against Astrazeneca pharmaceutical company which, through its director and other government and private officials, allegedly caused a loss of Rs 10 crore to the state health department. The agency has also registered a case against unknown officials of Central Procurement Agency (CPA) and Directorate of Health Service (DHS) of the Delhi government.

The CPA and the DHS had allegedly entered into Rate Contract (RC) with a private pharmaceutical company for procurement of Meropenem in 2009. Its procurement rate was fixed at Rs 1,530 plus Vat charges. The company submitted a false affidavit that none of the government, semi-government, autonomous company, public sector undertakings, hospitals, institutions and organisations got the Meropenem medicine at a lower than this rate. The company had got the supply contract through dubious means.

A show cause notice was issued to Astrazeneca by the Chief Medical Officer for recovery of Rs 7.5 crore. The company charged more from the DHS for the same medicine as compared to other agencies and authorised dealers. However, due to the connivance among the company and CPA officials, recovery proceedings were cancelled and DHS continued to purchase the medicines at a higher rate.

The agency raided the premises of Astrazeneca in New Delhi and Bangalore. It also raided the office of CPA and DHS. It got several documents including files, hard disk, etc, which are being examined.

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