​Review of ₹1,134 Crore MP Civic Purchases Reveals ₹250 Crore Potential Excess

Rinky Rai
By Rinky Rai - A freelance journalist
4 Min Read

BHOPAL: Wide variations in procurement rates across 374 urban local bodies in Madhya Pradesh have drawn sharp administrative scrutiny after a departmental review revealed potential savings of approximately ₹250 crore on purchases made through the Government e-Marketplace portal. Official data presented at a meeting of the Urban Administration Department showed that civic bodies spent nearly ₹1,134 crore over the past three years, with severe pricing disparities recorded in routine supplies such as disinfectants, streetlights, and sanitation vehicles.

​Price Gaps Across Routine Civic Purchases

​The internal review highlighted several extreme contrasts in the rates paid by different municipalities for comparable items. In one instance, a civic body procured one litre of phenolic disinfectant for ₹5, while another authority recorded a price of ₹33,500 for a similar product. A 60-watt LED street light purchased for ₹306 in one area cost ₹11,800 in Bhopal, where the civic body spent a total of ₹3.78 lakh on the order. Significant variations were also noted in sanitation machinery, where one local body purchased a garbage collection vehicle for ₹2 lakh while another paid ₹6 lakh for a vehicle supplied with four dustbins.

​Departmental figures confirmed that substantial public funds were committed across key utility segments during the three-year timeframe. Expenditures included ₹65 crore on garbage tippers and dumpers, ₹49 crore on streetlights, ₹27 crore on octagonal poles, and approximately ₹18 crore on disinfectants. While these items are essential to daily waste management and public lighting, meeting records noted that legitimate variations in brand, packaging, wattage, construction quality, and technical terms could account for some cost differences. However, the magnitude of the gaps has prompted calls for a comprehensive audit of purchase orders, vendor networks, and payment documents.

​Administrative Warnings Over Potential Irregularities

​Senior officials at the review meeting expressed concern that procurement costs may have been artificially inflated by bundling extra accessories or channeling contracts through associate vendors. The Additional Chief Secretary of the Urban Administration Department warned attendees that the state now possesses detailed data on purchase prices across all municipalities. Noting that procedural flexibility permitted in the previous year would no longer apply, the senior bureaucrat cautioned that procurement irregularities and repeat mistakes would invite immediate departmental action.

​Government Promises Inquiries and Follow-Up Action

​Urban Administration Minister of State Pratima Bagri confirmed that authorities will verify social media footage linked to the procurement disclosures and initiate an inquiry into the highlighted transactions. Bagri affirmed that punitive measures will follow if deliberate irregularities or rule violations are established, pointing out that previous infractions in municipalities and municipal councils had also met with administrative penalties. Responding to political criticism from the Congress party, Bagri maintained that the current administration actively investigates corruption, contrasting its approach with that of the earlier government. Departmental scrutiny will now focus on verifying whether the sharp price disparities stemmed from permissible contractual variations or procedural malpractice.

Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics

Stay Connected