Hyderabad firms involved in Telangana ESI fraud named in Andhra Pradesh too

HYDERABAD: Investigation by vigilance and enforcement (V&E) sleuths of Andhra Pradesh has found that Hyderabad-based companies and their directors involved in the ESI fraud in Telangana had a role in a similar fraud perpetrated in their state too.
Hyderabad-based Legend Enterprises and Omni Medi, involved in the ESI fraud in Hyderabad, have been accused of irregularities in Andhra Pradesh too.

Vigilance probe in Andhra Pradesh found that lab kits worth Rs 237 crore were purchased from Legend Enterprises and Omni Medi in violation of rules on nomination basis. Insurance Medical Services (IMS) had purchased lab kits at 36 per cent excess prices than in the open market and caused Rs 85 crore loss to the government exchequer.
Based on orders of minister K Achannaidu, IMS had paid the TeleHealth Services Private Limited of Hyderabad Rs 4.1 crore for the toll-free service and Rs 3.8 crore for ECG service on nomination basis. The company was paid Rs 480 per ECG whereas in other hospitals it was offered at Rs 200 per ECG.
The vigilance report, a copy of which is available with TOI, stated: “The service provider claimed the bill by submitting call logs of Telangana state IPs, and the directors paid the amount without verifying the genuineness of the call logs. The service provider utilised the services of PG Diploma clinical cardiologists instead of qualified DM cardiologists by violating agreement conditions and claimed the bills.”
The Vigilance officials found that three directors — Dr B Ravi Kumar, Dr CK Ramesh Kumar and G Vijaya Kumar of IMS — had in the past three years purchased Rs 975 crore worth drugs and equipment by violating rules. It was found that they had failed to form drug procurement committee and issued purchase orders without calling for open tenders.
In one of the transactions, Dr B Ravi Kumar, the then director, had purchased lab equipment from Legend Enterprises worth Rs 2.5 crore on nomination basis without calling for open tenders. One Jalam Environment Private Limited of Hyderabad was given Rs 3.45 crore maintenance contract without property agreements.
Prodigy Computers & Laptops, Hyderabad, had supplied 100 biometric devices on nomination basis, and they were found to be “not in working condition”.
Another firm, Jercon Enterprises of Bhavanipuram in Vijayawada, owned by daughter-in-law of Central Drug Store pharmacist K Dhana Lakshmi, was issued purchase order worth over Rs 9 crore.
The vigilance sleuths randomly verified purchase invoices. It was found that non-rate contract firms Raasi Pharma and Veeresh Pharma were given orders worth Rs 16 crore. According to the report, there was a difference of Rs 5.7 crore between the purchase invoice and sale invoice of Raasi and Veeresh Pharma.