According to a report by the Directorate General of Health Services (DGHS), orders to blacklist and stop payments were issued to some pharmaceutical suppliers earlier this year “without following due process” and “without the sanction of the competent authority”.

The controversial orders, issued following allegations of fake medicines against these companies, were partly responsible for the shortage of medicines in Delhi government-run healthcare facilities this year, according to officials.

In the DGHS report dated October 21, reviewed by HT, it was stated that these orders given by a senior bureaucrat had now been “cancelled and withdrawn” and that the directorate had launched an official investigation into the matter. The relevant official who serves as additional director (coordination) at DHGS is Dr. HC Birua was removed from his post.

DGHS comes under the Delhi government’s Health ministry and the latest report resurfaces the rift between the Aam Aadmi Party leadership and Lieutenant Governor V K Saxena, who on December 23 ordered a probe into allegedly substandard medicines. It led to suppliers being blacklisted.

On January 31, Birua wrote a letter to all government hospitals and medical inspectors, directing them to stop payments to 10 pharmaceutical distributors and blacklist their firms, citing allegations of cartelisation, substandard medicines, pooling of tenders and other fraudulent activities.

According to the order dated January 31, “More than ten companies were ordered to suspend payments until the financial damage was calculated and recovery was achieved.”

Suppliers, including those who ship to 30 hospitals run by the Delhi government, reported that payments were stopped. The controversy narrowed the pool of companies participating in tenders for pharmaceutical supplies, leading to shortages in medical facilities.

This is what officials say, he just meant it ₹As of October this fiscal year, 5 billion worth of medicines were purchased. ₹164 crore in 2023-24.

The AAP government called a meeting of the Delhi assembly in April to flag widespread shortage of medicines in Delhi hospitals and mohalla clinics. In September, Delhi government officials blamed blacklisting orders for the problem, and health minister Saurabh Bharadwaj raised questions on the issue in a meeting with the chief secretary in October, following which the DGHS ordered a probe.

As part of the investigation, the DGHS found that the orders given by Birua on January 31 were “beyond the scope of its authority” and “not sanctioned” by the DGHS, officials said.

Official documents state that Birua was given a show-cause notice on the matter on September 4. Two days later, the bureaucrat was asked for a report of all these orders, and finally, on September 13, DGHS dismissed him from his official responsibilities and a request was made to him. Reporting to the health secretary.

Separately, the Central Procurement Agency (CPA), which procures medicines and surgical consumables for all Delhi government institutions, said in an investigative report submitted on September 18 that it has not given any permission or approval for blacklisting orders and that they are “unilateral actions” and beyond his (Birua’s) authority.

HT emailed Birua but did not receive any response to requests for comment on the matter.

DGHS director Dr Vandana Bagga also did not respond to HT’s call and messages seeking comment on the matter.

Meanwhile, Bharadwaj alleged that the alleged impropriety was part of a “larger conspiracy” against the AAP government’s healthcare schemes.

“The vendors were supplying most of the medicines to healthcare facilities in Delhi. The blacklisting was apparently part of a larger conspiracy to harass vendors to not participate in the tender process and an artificial shortage of medicines could be created in Delhi government hospitals and mohalla clinics, affecting the new tender process. he said.

The DGHS report further stated that the chief secretariat took cognizance of these “illegal and ultra vires actions” and publicly on October 3 directed the principal secretariat of health to act in the case in the presence of the state health minister. .

HT has seen a copy of the report submitted to the chief secretary and the health minister on October 10.

Prime Minister Atishi on October 15 directed the chief secretary’s office to issue a show cause notice to Birua in the event of disruption of health services.

A health ministry official said a separate investigation found that the original claims about counterfeit drugs were false. “No samples were found that were contaminated or counterfeit. In some cases samples were found to be ‘not of standard quality’, which may be related to the dissolution time of the tablets or other parameters, but this is not a criminal offense and can be dealt with according to the tender conditions.” He said he wanted his name not to be disclosed.

When contacted, the Delhi unit of the Bharatiya Janata Party (BJP) alleged that the AAP government “failed to manage” the health sector.

“DGHS notifies or removes the notification to companies and suppliers according to the current conditions and evidence. If circumstances had changed, the blacklisting status would have changed accordingly. “There is no doubt that the government and the minister have failed to address the shortage of medicines in city hospitals and the people of Delhi are being supplied with fake medicines from government hospitals and clinics,” Delhi BJP spokesperson Praveen Shankar Kapoor said.