People's Democracy

CVC To Probe MAPL Corruption

TAKING serious cognisance of the financial irregularities in the Maharashtra Antibiotics and Pharmaceuticals Private Limited (MAPL), the Nagpur bench of the Bombay High Court instituted a probe by the Central Vigilance Commission  (CVC) and asked the CVC to constitute a Special Investigation Team and file the preliminary report within eight weeks.

This decision of the court endorses the struggle launched by the Democratic Youth Federation of India (DYFI) against the MAPL management for its involvement in unfair recruitment policy and corrupt practices.  The DYFI had also approached various government authorities in this regard. In fact, CPI(M) leader in Lok Sabha, Basudev Acharya, and the then CPI(M) MP Subodh Roy raised this issue with the then union chemical & fertilizer minister Sukhdev Singh Dindhsa. But the minister never replied satisfactorily.

A division bench consisting of Justice J N Patel and Justice S G Mahajan while instituting a CVC probe directed all the investigating agencies and authorities like the Central Bureau of Investigation (CBI), state police, sales tax department to extend all  possible co-operation to the  SIT to be constituted by the CVC.

Coming down heavily upon the laxity exhibited by the investigating agencies and authorities in probing the dubious deals entered into by MAPL with the help of some private pharmaceutical company, which caused a whopping loss of Rs 32 crore to the public exchequer, the high court gave them a dressing down.

According to the petitioner Arun Latkar, secretary of the DYFI, several private firms misused the name of licence of the MAPL and looted Rs 32 crore from the government institution.  Giving a specific example the petitioner pointed out that Commissioner of Integrated Child Development Scheme (ICDS) placed an order dated March 28, 2001 to MAPL for supply of 34,581 medical kits at the rate of Rs 600 per kit.  As per the terms and conditions of the order, the medical kits were to be manufactured by MAPL.  According to the petitioner the order was diverted to a third party M/s Vaishnavi Enterprises, Beed. The petitioner claimed that despite the firm not supplying  the stipulated number of medical kits, a full payment of Rs.2.07 crore was released.  Shockingly, the amount was deposited in a new account, opened at Dwarkadas Mantri Nagrik Sahakari Bank, Beed  and the same was promptly disbursed  to M/s Vaishnavi  Enterprises, Beed and M/s Map Pharma, Amravati. 

The Vaishnavi Enterprises is owned by Bharati Dwarkadas Mundhada, sister-in-law of Vimal Mundhada, Minister for Family Welfare and Health. It is not a mere coincidence that this whole issue is related with Vimal Mundhada.  The sales tax department in its affidavit revealed serious irregularities and pointed out that huge amount of tax was evaded in this episode. The supply of medicines to various government hospitals was made by M/s Map Pharma. M/s Plus Pharma, Mumbai, M/s Relief Lab Private Limited, Kalmeshwar, M/s Kartik Agencies – all on behalf of the MAPL. Taking into account the large-scale involvement of various private firms and highly placed officers of the MAPL and looking at the massive loss caused to the government by this deadly nexus, the high court asked the CVC to probe the entire affair and submit its preliminary report within two months.

MAPL was started in 1979 with the help of Hindustan Antibiotics Ltd., Pune, SICOM and   IDBI. The court  decision confirms the fact that it is the corrupt officials who are responsible for the loss of the public sector and not the workers as is usually alleged. (INN)