Wednesday's CBI raids in connection with the Uttar Pradesh NRHM scam recovered more than Rs 1 crore in cash and three kg of gold from the residence of P K Jain, general manager of a subsidiary firm of the Uttar Pradesh Jal Nigam.

The central bureau of investigation has registered five new cases on January 2 in connection with the National Rural Health Mission (NRHM) funds misappropriation in Uttar Pradesh.             

CBI had earlier registered five preliminary enquiries relating to alleged irregularities in the execution and implementation of National Rural Health Mission funds in the state since its inception in the year 2005-06 on the directions of the Allahabad high court, Lucknow bench. 

It was alleged that the parts of the NRHM funds to the tune of about Rs. 10,000 crore allocated to the state by the union ministry of health and family welfare had been misappropriated by state politicians and officials. The PEs registered by CBI pertained to the funds spent in civil works by office of director general (family welfare), procurement of medicines and equipments and information, education and communication by the office of director general (medical health) and office of director (training), state health society and others and funds allocated to chief medical officers of 72 districts of UP under various schemes approved by the central government involving a large number of beneficiaries. 

The enquiries into these PEs have so far prima-facie disclosed criminal misconduct and commission of offences in the following instances in which five regular cases have been registered -

i) One case has been registered in respect of upgradation of 134 districts hospitals for an amount of Rs.13.4 crores by Construction & Design Services, a unit of UP Jal Nigam. It was revealed that the said work was given to a Ghaziabad-based firm on the basis of bogus/forged documents. The materials installed in the hospitals were found to be of inferior/sub-standard quality. An approximate loss of Rs. 5.46 crores was found to have been caused to the government exchequer in the said case. 

ii) Four cases have been registered in connection with irregularities in awarding contracts in the procurement/purchase of medicine and medicinal equipments, expenditure incurred for the purpose of printing of publicity material, hoardings, banners etc. by the then DG (family welfare).  The procurement of these items was done through state-owned PSUs at exorbitant rates which were four to five times more than the prevailing market rates.   Details of the four cases are given as under - a) In one case, the contract was awarded in pre-decided  manner in procurement of medical equipments amounting to  Rs.4.42 crores to two Moradabad-based firms by the then  director general (family welfare) through UPSIC. An approximate  loss of Rs. 1.5 crores was found to have been caused. 

b) In another case, tenders were awarded at exorbitant prices  in the procurement of outdoor media material like hoardings, flex banners, signages etc. to Moradabad based private firms for Rs. 13.7 crores. In this case, an approx. loss of Rs. 8 crores was found to have been caused to the government exchequer.

c) Another case relates to the procurement of medical kits, in  which the contract was given to Ghaziabad-based firm for Rs. 31.59 crore at exorbitant rates causing an approx. loss of Rs. 10 crores  to the government. 

d) A separate case has been registered in connection with procurement/purchase of computers by state health society through state public sector undertaking(PSU), M/s Shreeton  India Ltd. The PSU paid advance money to two private firms  based at Lucknow and Noida/Delhi even before tender was invited by them causing the estimated loss of approximately Rs.2.93 crores.       

Searches were conducted on Wednesday at more than 60 places in UP, Haryana, Delhi and MP after obtaining the search warrants from the competent courts on Tuesday itself. These places included the premises of various private firms which have been the beneficiaries of the alleged crime, residential and office premises of officials of state public sector enterprises and the then DG (Family Welfare) accused of favouring private firms. So far, during the course of searches huge unaccounted cash from the accused public servants and incriminating documents related to alleged mis-utilization of NRHM funds have been recovered. Searches are still continuing. Enquiries in the preliminary enquiries and investigation in the regular cases are in progress. Arrests are likely to be made soon.