Taking cognisance of the complaint filed by an NGO the CCI had asked the Director General to probe.
In what appears to be a scam in the medical purchases, the Competition Commission of India (CCI) has raised questions over cartelisation of a few companies in tender process for supply of medical equipment and systems to government hospitals.
The CCI, a body to prevent activities that have an adverse effect on competition, has objected to the modus operandi in awarding tender for prefabricated modular operation theatre and medical gases to Sports Injury Centre (SIC), Safdarjung Hospital, New Delhi, and Jai Prakash Narain Apex Trauma Centre of All India Institute of Medical Sciences (AIIMS) in 2009. It felt that the bids should have been rejected on account of non-compliance of technical requirement of the tender.
The CCI has fined three companies - PES Installation Pvt Ltd (PES), MDD Medical Systems Pvt Ltd (MDD) and Medical Products Services (MPS) - for their collusive acts in bid rigging and rotating to benefit each other. Taking into account the anticompetitive acts of these parties, the commission imposed penalty@
5% on the average turnover of 3 years aggregating to about Rs3.01 crore on them.
It further said the firms were successful in their endeavour of causing loss to exchequer since the technical and financial evaluation committee did not adhere to the initial tender conditions. It observed better tender design and cost estimation could have avoided a situation where winning firm was awarded contract at a price almost 142% more than the estimated cost of bid.
Taking cognisance of the complaint filed by an NGO the CCI had asked the Director General to probe.
AIIMS and health ministry replied that the pre-qualification criteria were duly vetted and approved by competent committee and there was no procedural lapse evaluation of bids. The companies too have denied the allegations.
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