Bhopal: An alleged major fraud in the procurement of computers and other equipment by a government department has come to light in Madhya Pradesh. The Economic Offences Wing (EOW) has registered a case over alleged irregularities in procurement worth around ₹10.99 crore through the Government e-Marketplace (GeM). According to the investigating agency, four companies allegedly linked to one another participated in tenders as separate bidders, creating an artificial impression of competition. The firms are accused of supplying old computers as new and providing equipment that allegedly did not meet the prescribed specifications to the Department of Social Justice and Empowerment of Persons with Disabilities.
The EOW has registered an FIR against four people associated with different companies under relevant provisions of the Bharatiya Nyaya Sanhita. According to officials, the FIR was registered on September 1. The agency is now examining the tender process, alleged links between the companies, the actual condition of the equipment supplied and documents related to government payments.
Alleged Nexus Between Four Companies
The EOW investigation has claimed that the four companies participating in the tenders were allegedly controlled by or connected to the same person. Despite these alleged links, they participated in GeM tenders under separate company names.
According to the agency, this created the appearance that several independent companies were competing against each other in the procurement process.
The investigation also allegedly found several common links between the firms. The EOW said the same mobile number was linked to a common GST account, while the companies allegedly used the same email ID and address. They also participated together in tenders and submitted manufacturer authorisation letters to establish their eligibility.
The EOW has alleged that this arrangement was intended to undermine genuine competition and secure an unfair advantage in the tender process.
Old Computers Allegedly Shown as New
One of the major irregularities identified during the investigation concerns the alleged supply of old computers as new equipment. According to the EOW, computers involved in one procurement had already been installed on July 22, 2024, while the related tender was issued on September 23, 2024.
The agency has cited the discrepancy in dates as an indication that equipment already installed was allegedly presented as new computers in a subsequent tender. The investigation also found alleged discrepancies in the technical specifications of the computers supplied.
Locally Sourced SSDs and RAM Allegedly Used
According to the EOW, some of the computers supplied under the procurement were fitted with locally sourced solid-state drives (SSDs) and RAM. The agency has alleged that the capacity and quality of these components did not conform to the technical specifications prescribed in the tender.
The investigation also found that one company allegedly submitted a fake authorisation letter in the name of a multinational computer manufacturer to qualify for participation in the tender. The EOW is examining who prepared the document, who submitted it and the role of those involved.
UPS Listed at ₹3,754 Allegedly Purchased for ₹11,247
The procurement process has also come under scrutiny over alleged discrepancies in equipment prices. According to the EOW, a UPS carrying a printed price of ₹6,086 was purchased by the department for ₹11,247. The same equipment was listed on GeM at ₹3,754, according to the investigation.
The manufacturer also reportedly informed the agency that the UPS model mentioned in the procurement was not supplied by the manufacturer under the concerned tender.
The information has raised questions about both the procurement process and the authenticity of the equipment supplied to the department.
Firms Recommended for Blacklisting
The EOW has recommended action against the companies allegedly involved in the irregularities, including blacklisting them. The agency is also investigating the actual financial loss allegedly caused to the government department through the purported manipulation of the bidding process.
Another key aspect of the investigation is whether any government officials or employees were involved in or facilitated the alleged irregularities.
The EOW is currently examining tender documents, financial transactions of the companies, the computers and other equipment supplied, and their technical specifications.
With an FIR already registered against four people, the investigation is continuing. Further action against the accused and the companies concerned may follow on the basis of documentary and financial evidence gathered during the probe.
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About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
