Hitting out at the World Bank for 'unfairly' debarring it and terming the action as 'collusive practice', Delhi-based Nestor Pharmaceuticals today said the firm would have taken the lending institution to court but for the immunity enjoyed by it.
"We were unfairly debarred by the World Bank in 2007 for three years for unsubstantiated claims of 'collusive practices' for having the same price as that of a competitor in one tender out of the hundreds of tenders participated in," Nestor Pharmaceuticals President Rahul Sehgal said in a statement.
He said, World Bank's action was based on complaints by the company's competitor who lost business to it as Nestor was supplying "the best quality medicines at the lowest prices under the Reproductive and Child Health projects".
"Tender was not even decided and that there was no cause of action for such a debarment to have taken place...The scrutiny of the World Bank was insufficient and inconclusive and we have all documents to prove the same," Sehgal said.
"Nestor would take the World Bank to court on account of this unfair treatment, which has resulted in damage to our reputation, but unfortunately the World Bank is immune to court action," he said.
Sehgal claimed after Nestor was barred by the World Bank, India had to procure the same medicine that it used to provide at thrice the cost.
"Truly speaking, the World Bank action against Nestor is actually tantamount to collusive practice as it prevents the government of India from purchasing good quality an affordable medicines," Sehgal said.
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World Bank official could not be contacted for comments.
Yesterday, the World Bank had deemed Nestor ineligible to bid for direct contracts from 2007 to 2011. It also debarred IT major Wipro from doing business for the same period.