Court orders CVC probe into MAPL violations irregularities

Taking serious cognisance of the financial irregularities in Maharashtra Antibiotics and Pharmaceuticals Pvt Ltd (MAPL), the Nagpur bench of the Bombay High Court has instituted a probe by the Central Vigilance Commission (CVC) and asked the CVC to constitute a special investigation team and file a preliminary report within eight weeks.

A division bench consisting of justices J N Patel and S G Mahajan while instituting a CVC probe directed all the investigating agencies and authorities such as CBI, state police, sales tax department to extend all possible cooperation to the SIT.

It came down heavily on investigating agencies for showing laxity in probing the dubious deals entered into by MAPL with the help of some private pharmaceutical companies resulting in a fraud of Rs 32 crore.

According to the petitioner - Arun Latkar, secretary of the Democratic Youth Federation of India, several private firms misused the licence name of MAPL and procured orders worth Rs 32 crore from government institutions.

Giving a specific example, the petitioner pointed out that commissioner of Integrated Child Development Scheme placed an order dated March 28, 2001, with MAPL for supply of 4,581 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 pointed out that the private company did not supply the stipulated number of medical kits and yet received the full payment of Rs 2.07 crore.

Shockingly, the amount was deposited in a new account opened at Dwarkadas Mantri Nagrik Sahkari Bank, Beed, and same was promptly disbursed to M/s Vaishnavi Enterprises and M/s Map Pharma, Amravati.

The sales tax department in its affidavit also revealed serious irregularities and pointed out that huge amount of tax was evaded and supply of medicines to various government hospitals was made by M/s Map Pharma, M/s Plus Pharma, Mumbai, M/s Relief Lab Pvt Ltd, Kalmeshwar, M/s Kartik Agencies on behalf of 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.

The high court also praised the assistant commissioner, sales tax, Rekha Chondekar for her fearless investigation into the matter and efforts taken to unearth the unholy nexus between private firms and MAPL to defraud the government agencies.