The Karnataka State Medical Supplies Corporation Limited (KSMSCL) has decided to cancel more than 15 tenders worth Rs 42.66 crore awarded to a company for procurement of essential drugs.
This, after the Chhattisgarh Medical Services Corporation Limited (CMSCL) decided to reintroduce the firm into the list of blacklisted companies till 2024.
The cancellation is likely to affect the procurement of 44 drugs supplied to primary healthcare centres, community health centres, taluk and district hospitals run by the health and family welfare department.
KSMSCL will have to float tenders again to obtain these essential drugs, say officials.
The decision follows another complaint against the firm and a DH report dated June 13 which highlighted that KSMSCL had issued procurement orders to a blacklisted company.
These orders were related to the tenders floated in December 2021 and the first three months of 2022.
The complaint filed with the chief minister, chief secretary, health and family welfare minister and others alleged that KSMSCL had procured essential drugs from the company despite the fact that it was blacklisted.
The complaint had claimed that KSMSCL had deliberately delayed issuing supply orders for the tenders secured by the private firm, which provided enough time for the company to produce a court stay against the decision of CMSCL.
The Uttar Pradesh-based firm, according to the updated blacklist of CMSCL, is now blacklisted for “not fulfilling tender terms and conditions”.
KSMSCL officials had said that the complaint against the firm was not related to the quality of drugs supplied by the company, but delay in submission of relevant documents.
Following the blacklisting, the company has approached the Chhattisgarh High Court, which had stayed the decision of CMSCL. However, KSMSCL rules bar procurement from such companies despite the stay and until the company is removed from the blacklist.
Tenders again
KSMSCL managing director N M Nagaraja said they have decided to cancel the procurement orders awarded to the firm.
“We will float fresh tenders to procure the said drugs,” he said.