LUCKNOW: Serious irregularities have surfaced in the procurement of medicines by the Uttar Pradesh Homeopathy Department, raising questions over transparency and fairness in the government purchase system. Documents and complaints reveal that under the guise of tenders issued through the Government e-Marketplace (GeM), competition was curtailed and undue benefits were allegedly extended to a few select companies. As a result, not only were micro, small and medium enterprises (MSMEs) pushed out of the process, but several medicines were procured at prices two to three times higher than prevailing market rates.
According to a complaint submitted by the Homeopathic Drugs Manufacturers Association, the department framed tender conditions in a manner that effectively excluded most MSME manufacturers. It has been alleged that in several districts, tenders were floated specifying brand names of particular companies, a practice that violates established government procurement norms and financial rules.
Imbalance in Budget Allocation
Documents further indicate significant disparity in budget distribution. Out of a total allocation of ₹4.49 crore, an amount of ₹2.79 crore was distributed among just 662 dispensaries across 23 districts, while the remaining ₹1.70 crore was allocated to 922 dispensaries in other districts. Experts point out that this allocation neither reflects population-based requirements nor appears to be driven by actual demand on the ground.
The department had issued an Essential Drug List for homeopathic medicines. However, most districts failed to adhere to this list. Purchases were made for medicines outside the approved list, leading to unnecessary financial burden and raising doubts about the intent behind the procurement decisions.
Violation of Tender Norms
The scrutiny has also revealed that in some districts, tenders were issued without even mandating a valid drug licence—an omission considered extremely serious for a health-related department. In addition, certain tenders reportedly contained the names of suppliers in advance, directly undermining the fairness and credibility of the bidding process.
Entrepreneurs have alleged that since 2019, the department has not conducted regular tenders. Officials reportedly cited the absence of a separate category for homeopathic medicines on the GeM portal and continued issuing tenders based on Bills of Quantity (BoQ). This approach, industry representatives claim, severely restricted competition and allowed prices to be fixed arbitrarily.
Same Medicine, Different6 Prices Across Districts
One of the most startling revelations relates to the procurement of the same medicine at widely varying prices across districts. The case involves the ‘1M Dilution’ medicine, which was purchased at sharply different rates in different parts of the state. Available data shows that the medicine was procured at ₹198 per unit in Pratapgarh, ₹173 in Prayagraj (Allahabad), ₹34 in Chandauli, ₹192 in Bulandshahr and ₹160 per unit in Kushinagar.
What has raised further concern is that the same medicine was earlier procured through a standard tender process at rates ranging between ₹25 and ₹30 per unit. Meanwhile, under the State Ayush Mission, the identical medicine is being purchased at ₹55 to ₹60 per unit. Experts maintain that if the medicine type, quality and dilution are identical, such a wide variation in pricing is unjustifiable.
Direct Blow to MSMEs
Industry bodies argue that MSME manufacturers of homeopathic medicines have been the biggest casualties of this procurement process. Tender conditions were allegedly designed in a way that sidelined small manufacturers, leading to market concentration in the hands of a few companies.
Demand for High-Level Probe
With these allegations coming to light, demands for a high-level investigation into the procurement process have intensified. Experts warn that if the allegations are found to be true, the matter would not only amount to misuse of public funds but also pose serious questions about the credibility of the public healthcare delivery system.
