The Chhattisgarh Medical Services Corporation ltd (CGMSCl) had displayed undue favour to a firm for an order placed in July 2013 to supply 38020 vials of Polyvalent Anti Snake Venom for Rs 2.41 crore, the Comptroller and Auditor General of India (CAG) in its report has observed.
The Polyvalent Anti Snake Venom being a biological product, it was required to be accepted after quality control approval from the Central Drugs laboratory (CDl), it stated.
The CGMSCl granted extension in delivery period from 60 to 120 days in March 2014 without “liquidated Damages’ (lD) after which penalty at the rate of 20 per cent on undelivered portion was to be levied, the report stated.
In order to avoid the penalty, the firm delivered 16,610 vials directly to the CGMSCl without sending the same for quality test to CDl, while balance quantity was delivered on time with CDl report.However, CGMSCl accepted the drugs and released the entire payment without deducting lD resulting in undue favour to firm for Rs 20.50 lakh. The Principal Secretary, Health and Family Welfare Department while agreeing to the audit observation had directed CGMSCl in October 2015 to explain the reasons for non levy of penalty and accepting drugs without test reports. Further response from the government was awaited as on November 2015, the report stated.