THREE YEARS IMPRISONMENT TO THEN PROJECT DIRECTOR (IAS OFFICER) OF KARNATAKA STATE AIDS PREVENTION SOCIETY AND THREE OTHERS FOR WRONGFUL PURCHASE OF BLOOD BAGS

Press Release
New Delhi , 23.04.2013

            The Special Judge for CBI Cases, Bangalore has convicted Ms.T. Mukthamba, IAS (Retd), the then Project Director, Karnataka State AIDS Prevention Society(KSAPS), Bangalore and three others Shri G.M.Renukaiah, the then Technical Assistant Karnataka State AIDS Prevention Society, Bangalore ; Shri Bharat B.Ostwal, Proprietor of M/s. Rahul Pharma, Bangalore & Shri Jeetendra Kumar M Ostwal, Proprietor of M/s.Life Associates, Hubli and sentenced them to undergo three years simple imprisonment with fine of Rs.1,40,000/-.

 

            The investigation revealed that National Aids Control Organisation, Ministry of Health & Family Welfare, (Govt. of India) New Delhi had sanctioned a grant for purchase of consumable items for 17 Additional blood banks @ Rs.1.25 lakh per blood bank. The Dy. Director (Blood Safety), KSAPS had sought permission of Project Director for utilizing Rs.10 lakhs from the fund towards purchase of 17,000 nos of 350 ml blood bags approximately costing of Rs.62/- per blood bag and for another 10 lakh for purchase of HCV Elisa Test Kits & HCV Tridots. The Deputy Director had deliberately kept the amount to be spent on purchase of blood bags as Rs.10 lakh, to avoid inviting of National Competitive bidding and to facilitate National Shopping Process in which quotation from any three suppliers was required. The note of Deputy Director was allegedly approved by the then Project Director Ms. T. Mukthamba on same day. Accordingly, quotations were called and supply order was given to M/s. Rahul Pharma for supply of 17000 nos Blood Bags at the rate of Rs.62/- per blood bag. The act of the accused persons had caused a wrongful loss of Rs.11,05,320/-(approx).

 

            CBI had filed a charge sheet after completion of investigation against six accused persons i.e Ms.T. Mukthamba, IAS (Retd), the then Project Director, Karnataka State AIDS Prevention Society, Bangalore ; the then Deputy Director ; Shri G.M.Renukaiah, the then Technical Assistant both of Karnataka State AIDS Prevention Society, Bangalore ; Shri Bharat B.Ostwal, Proprietor of M/s. Rahul Pharma, Bangalore and Shri Jeetendra Kumar M Ostwal, Proprietor of M/s.Life Associates, Hubli U/s. 120B r/w 420 IPC and 13(1) (d) and 13(2) of PC Act, 1988. The Deputy Director died during the course of trial.

 

            The Trial Court found all the five accused guilty and convicted them.

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