CBI ARRESTS THE THEN MINISTER(FAMILY WELFARE) AND ANOTHER MLA OF UTTAR PRADESH IN AN ON-GOING INVESTIGATION RELATING TO ALLEGED IRREGULARITIES IN THE EXECUTION AND IMPLEMENTATION OF NATIONAL RURAL HEALTH MISSION (NRHM) FUNDS

Press Release
New Delhi , 03.03.2012

            The Central Bureau of Investigation has today arrested the then Minister (Family Welfare) and another MLA( believed to be a close confidante of the then Minister) of Uttar Pradesh in an on-going investigation relating to alleged irregularities in the matter of execution & implementation of NRHM and utilization of funds in UP, from 2005-06 onwards till date.

 

            These arrests have been made in the case registered in respect of up-gradation of 134 districts hospitals for an amount of Rs. 13.4 crores(approx.) by C&DS, a unit of UP Jal Nigam. The investigation has so far disclosed that the said work was given to a Ghaziabad based private company on the basis of bogus/forged documents and the materials installed in hospitals were found to be of inferior/sub-standard quality. Evidence collected during investigation has revealed that the rates quoted by the said private company and another party were exorbitant to the extent of five times than the market rates. Huge cash payments were allegedly paid by private supplier to the then Minister and his associates in lieu of these contracts. An approximate loss of Rs. 5.46 crores was found to have been caused to the Government exchequer in the said case.

 

            Both the arrested accused are being produced today in the Designated Court at Ghaziabad(U.P.).

 

            Pursuant to the directions on 15.11.2011 by the Hon'ble High Court of Allahabad, (Lucknow Bench) vide in W. P. No. 3611 of 2011, CBI registered 5 preliminary enquiries.

 

            On the basis of the enquiry carried out so far, CBI has registered 12 Regular Cases involving irregularities in the utilization of NRHM funds to the tune of Rs.370 crores(approx.). The CBI enquiry into the above mentioned PEs and RCs, disclosed alleged prima facie, offences of criminal misconduct and conspiracy on the part of the then Minister (family Welfare), the then Principal Secy.(FW) and officials at various levels with private contractors/ vendors. Investigation carried out so far has indicated that tenders were allegedly awarded in a pre-decided manner to favour certain private firms, at exorbitant rates, in gross violation of established tender procedures, thereby causing loss to the Government exchequer. The investigation has also revealed that select private firms were awarded a large number of contracts.

 

            CBI has arrested 10 persons so far including one retired DG(Family Welfare), the General Manager of a state PSU (Construction & Design Services (Subsidiary of UP Jal Nigam), one retired MD of another state PSU Shreetron India Ltd.

 

            Further Investigation is continuing.

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