In a significant development, the City’s Economic Offences Wing (EOW) has recently registered a First Information Report (FIR) against Mylan Laboratories and other entities. This action comes in response to allegations of supplying Remdesivir vials to the Brihanmumbai Municipal Corporation (BMC) at an inflated rate during the COVID-19 pandemic, which has resulted in a staggering loss of Rs 5.96 crore.
Background
As Covid-19 cases surged in the city, BMC initiated a tender process in 2021 to procure vital injections of the antiviral drug, Remdesivir. The initial tender with Mylan Laboratories stipulated the supply of 40,000 vials at a cost of Rs 650 per vial. However, the company fell short, delivering only 31,000 vials.
BMC’s Urgent Need for Remdesivir
Amid the rapid surge of COVID-19 cases in the city, BMC, in 2021, issued tenders to procure antiviral drug Remdesivir. The first tender was awarded to Mylan Laboratories, stipulating the supply of 40,000 vials at a cost of Rs 650 per vial. However, the company only delivered 31,000 vials, raising concerns about the completion of the order.
Second Tender Raises Eyebrows
Despite the initial setback, the BMC surprisingly placed a second tender order with Mylan Laboratories for a staggering 2 lakh vials, just two weeks after the first order. This time, the price per vial skyrocketed to Rs 1,568, marking a significant price hike. Shockingly, the BMC only received 65,000 vials in the second order, deepening suspicions about the procurement process.
EOW Initiates Investigation
The Economic Offences Wing has initiated an investigation to determine the whereabouts of the remaining vials and to ascertain the total amount paid to the supplier. Moreover, the EOW is delving into the peculiar price disparity within the short span of two weeks, raising questions about the procurement practices.
Alleged Financial Irregularities Under Scrutiny
This isn’t the first instance of scrutiny directed at the BMC’s handling of resources during the COVID-19 pandemic. On July 28, the EOW registered four preliminary inquiries related to alleged irregularities in BMC’s spending during the crisis. The FIR pertaining to alleged financial irregularities in the procurement of Remdesivir injections at exorbitant prices is one of these inquiries.
Conclusion
As the investigation unfolds, the spotlight remains on Mylan Laboratories and BMC, shedding light on the intricacies of public procurement during a crisis. This case underscores the importance of transparency and accountability in the distribution of crucial medical supplies during times of crisis. The city’s Economic Offences Wing is committed to unraveling the truth and ensuring that those responsible for any financial discrepancies are held accountable.
