CBI REGISTERS FIVE NEW CASES ON 02.01.2012 IN CONNECTION WITH ALLEGED IRREGULARITIES IN THE IMPLEMENTATION OF NATIONAL RURAL HEALTH MISSION (NRHM) FUNDS IN UTTAR PRADESH AND CONDUCTS SEARCHES.

Press Release
New Delhi , 04.01.2012

           The Central Bureau of Investigation has registered five new cases on 2nd January, 2012 in connection with the National Rural Health Mission (NRHM) funds in Uttar Pradesh.

            The Central Bureau of Investigation has earlier registered five Preliminary Enquiries relating to alleged irregularities in the execution and implementation of National Rural Health Mission funds in the State of UP since its inception in the year 2005-06 till date on the directions of Hon'ble Allahabad High Court, Lucknow Bench passed vide order dated 15.11.2011.

            It was alleged that the NRHM funds to the tune of about Rs. 10,000 crores were allocated to State of Uttar Pradesh for the said period by the Ministry of Health & Family Welfare, Govt. of India. The PEs registered by CBI pertained to the funds spent in Civil Works by Office of Director General (Family Welfare), Procurement of Medicines & Equipments and Information, Education and Communication by Office of Director General (Family Welfare), 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 Govt. of India 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 on 2.1.2012:-

            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(UP)-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(UP) 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) An another case relates to the procurement of medical kits, in which the contract was given to Ghaziabad based firm for Rs. 31.59 crores 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 today at more than 60 places in UP, Haryana, Delhi and MP after obtaining the search warrants from the competent Courts yesterday 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.

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