A major case involving alleged financial irregularities in the procurement of diagnostic kits and related medical equipment has surfaced in Uttar Pradesh, leading to the immediate dismissal of a senior health official. The Uttar Pradesh Medical Supplies Corporation Limited reportedly issued a purchase order valued at approximately ₹15 crore against an original tender estimated at just ₹15 lakh. Following an initial inquiry into glaring discrepancies between the approved rates and the units ordered, the corporation’s General Manager of Supply Chain, Sugandha Sharma, was removed from service. The procurement was financed through funds sanctioned under the National Health Mission.
Clerical Shift from Pieces to Packets Multiplies Order Value
According to departmental sources, the procurement exercise commenced in 2024 to supply diagnostic kits and related items to state-run hospitals across Uttar Pradesh. During the bidding process, the selected vendor quoted its supply rates on a per-piece basis. However, while official purchase orders were being finalized, the unit of measurement was altered from per piece to per packet.
This change inflated the final order value by nearly one hundred times the baseline tender amount. The substantial variance triggered widespread concern regarding the technical oversight applied prior to issuing procurement contracts. Furthermore, the supplier promptly delivered massive consignments of diagnostic kits and equipment, even though the state health department had not projected any immediate requirement for supplies on such an extensive scale.
High-Level Administrative Inquiry Confirms Procedural Lapses
The matter came to light after a formal complaint was submitted to the Deputy Chief Minister, prompting the state administration to initiate a high-level review. The inquiry, conducted at the level of the Principal Secretary, identified severe procedural lapses in the tender process and noted that the altered units effectively conferred undue financial benefits upon a private vendor. Following the findings, the state government ordered the dismissal of General Manager Sugandha Sharma.
Investigators are continuing to review the conduct of other corporation officials involved in the transaction. Departmental authorities emphasized that final accountability and the precise quantum of financial loss suffered by the state exchequer will depend on ongoing inquiries, which may lead to additional administrative penalties and legal proceedings against responsible parties.
Enforcement Directorate Scrutinizes Health Procurement Across Four Districts
Parallel to the internal inquiry, the Enforcement Directorate is conducting a broad investigation into public healthcare procurement, supplies, and hospital tenders in four districts of Uttar Pradesh: Shravasti, Bahraich, Gonda, and Balrampur. The central agency’s probe encompasses financial transactions dating from 2013 through the 2025-26 fiscal year, examining how public funds allocated for hospital infrastructure and healthcare services were utilized.
Investigators are scrutinizing original tender files, vendor supply records, and hospital delivery receipts to verify compliance with statutory procurement norms. While the agency has sought critical records from the Uttar Pradesh Medical Supplies Corporation Limited, several files remain pending submission. Investigators are now assessing whether systemic lapses identified in the ₹15 lakh tender controversy are linked to the broader irregularities under review across the four districts.
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