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Ever since Dr. Devika Rani took charge as director of IMS in 2015, the department had been procuring large amounts of drugs, surgical kits and other medical equipment from non-rate contract (RC) firms at exorbitant prices without recording the valid reason, said the official.
Those benami firms were set up by Dr. Devika Rani, IMS joint director K. Padma and assistant director K. Vasanta Indira and were maintained by Srihari, Ch. Siva Nagaraju of Omni Medi, B. Sudhakar Reddy of Teja Pharma and NewsChannel journalist K. Narender, said the official on condition of anonymity.The firms from where the department was purchasing the medicines by paying 100 to 300 per cent more than the rate contract were not included in the RC list, he said.According to the officials, the IMS has to form a mandatory Local Purchase Committee for procuring medicines from local suppliers only in case of emergency or non-availability of stock with RC firms. “After a closed-door pre-bid process, they have accepted the quotations from three or four companies set up by Dr. Devika Rani and her colleagues,” said the official.
Further, the investigators found that in May last, Dr. Padma prepared two fake indents for medicines worth 1.03 crore and claimed bills. Though the in-charge medical officers of dispensaries in Patancheru and Borabanda did not indent those medicines, Dr. Devika Rani passed the bills.
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