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MP EOW Books Four Firms in ₹10.99-Crore GeM Fraud
The Madhya Pradesh government wanted to buy computers and other equipment.
It used the Government e-Marketplace, called GeM, for the purchase.
Four companies entered the tender, but investigators say they were connected to the same person.
This may have made them look like separate competitors when they were not.
The EOW says some computers supplied as new had already been installed in July 2024.
It also says some parts, such as RAM and SSDs, did not meet the required quality.
A UPS that cost ₹3,754 on GeM was allegedly bought for ₹11,247.
The EOW registered a case against four people and recommended possible action, including blacklisting the firms.
The Madhya Pradesh Economic Offences Wing booked four firms and four people over alleged procurement irregularities.
The firms allegedly supplied old or substandard computers, printers, UPS units and related equipment worth ₹10.99 crore.
Investigators said the four bidders were linked through common ownership, GST details, phone numbers, emails and addresses.
Computers installed in July 2024 were allegedly presented as new in a tender floated in September 2024.
A UPS allegedly bought for ₹11,247 had a GeM price of ₹3,754, while some specifications and an authorization letter were allegedly falsified.
- Who
- The Madhya Pradesh Economic Offences Wing, four supply firms and four accused individuals named as Randhir Patel, Hemlata Patel, Ashok Kumar Singh and Devendra Singh.
- What
- The EOW registered a case over alleged fake bidding, overpricing and the supply of old or substandard computer equipment.
- Where
- The procurement involved Madhya Pradesh’s Social Justice and Empowerment of Persons with Disabilities Department and the GeM portal.
- When
- The tender was floated in September 2024, including September 23 according to the PTI report; PTI said the FIR was registered on September 1. The reports differ on their publication day.
- Why
- Investigators allege that linked firms created the appearance of competition and supplied equipment that did not meet tender requirements, including allegedly overpriced UPS units.
Key facts
- Alleged procurement value
- ₹10.99 crore
- Investigating agency
- Madhya Pradesh Economic Offences Wing (EOW)
- Purchasing department
- Social Justice and Empowerment of Persons with Disabilities Department
- Tender platform
- Government e-Marketplace (GeM)
- Tender timing
- September 2024; the PTI report specifies September 23, 2024
- Alleged UPS purchase price
- ₹11,247 per unit
- GeM price cited by EOW
- ₹3,754 per unit
- Recommended action
- The EOW recommended action including possible blacklisting of the firms
Sources
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