D’Cunha commission recommends Lokayukta probe into supply of ventilators to State under PM Cares

Report recommends detailed inquiry into ventilator procurement irregularities under BJP government in Karnataka during COVID-19.

The report by the commission headed by retired High Court judge John Michael D’Cunha, which investigated the alleged irregularities in procurements and management of COVID-19 during the BJP government’s tenure, has recommended a detailed inquiry into the supply of ventilators to Karnataka under PM Cares through the Lokayukta or any other investigating agency.

According to a 279-page report on procurements made by the Karnataka Medical Supplies Corporation Ltd. (KSMSCL), which is compiled in part IV of the report, the need for the purchase of 130 ventilators on March 22, 2020, was not justified as the same number of ventilators were allotted by the Centre under PM Cares on the same day when the State placed orders.

Apart from the 130 ventilators, KSMSCL received 3,503 more ventilators on subsequent dates from June 2020 under PM Cares. Besides, the Corporation procured 1,538 more ventilators of different specifications from seven agencies for a total value of ₹ 10.65 crore, the report stated.

“As of the date of placing an order with Skanary Technologies for the supply of 130 ventilators, the same number of ventilators (130 nos) were allotted by the Central government under PM Cares. A purchase order was issued on the same day of supply to HLL Pvt. Ltd., which indicated that KSMSCL had knowledge of the allotment made by the Centre. As such, there was no need to procure the 130 ventilators,” the report pointed out. 

The Commission took note of records showing that all the 3,503 ventilators supplied under PM Cares have been taken into stock by KSMSCL; of these, 154 ventilators supplied by Aqua ventilators have been returned to the company, and no payment has been made. The remaining 3,349 ventilators were issued to State-run facilities in the districts. 

Apart from these procurements, supply orders were also seen to have been issued to six other private firms for the supply of 60 ventilators on March 24, 2020, and 10 ventilators on April 16, 2020. “The supply orders have been revised many times based on the requests of the firms. Of these, only 28 ventilators have been supplied, and payments have been made in respect of these 28 ventilators. The reasons for short supply are not forthcoming in the records,” the report stated.

Apart from the allotment under PM Cares, an additional 158 ventilators have been purchased by KSMSCL. Of these, 130 ventilators were purchased from Skanray Technologies on March 22, 2020. However, the records indicated that only 45 of the 130 ventilators were delivered. However, the KSMSCL has made a total payment of ₹ 7.28 crore for the entire lot. When questioned, the Managing Director of KSMSCL showed records for five more ventilators, taking the total delivered to 50. The payment in respect of 80 ventilators amounting to ₹.4 crore is “illegal and unjustified,” the report stated.