Now,Sheetron under CAG glare for ‘overcharging’ ICDS directorate

In its report on the Integrated Child Development Services (ICDS) scheme,the Comptroller and Auditor General of India (CAG) has named state-owned Shreetron India Ltd,a firm already named by the CBI in the NRHM scam in Uttar Pradesh,for supplying computers and printers at almost double the purchase price to the ICDS directorate.

According to the report,Shreetron supplied computers,printers and UPSs worth Rs 6.08 crore to the directorate while purchasing the same at Rs 3.33 crore from the original equipment manufacturers,thus making a profit of Rs 2.75 crore. The Uttar Pradesh government,in August 2004,authorised Shreetron India Limited to supply computers and peripherals to departments at rates quoted by it. As per the arrangement,the state ICDS directorate sanctioned a purchase of 820 computers,printers and UPSs for its project offices from Shreetron without any tender process in October 2009. The amount sanctioned was Rs 6.08 crore. Shreetron supplied the computers and peripherals to ICDS in November and December 2009. However,the directorate entered into an agreement with the firm in April 2010,four months after the supply was completed.

Further,a scrutiny of the delivery challans and bills of the original equipments manufacturers showed that while Shreetron purchased computers from HCL Infosystem at Rs 31,000 per unit,it supplied the same to ICDS at Rs 49,932,thus at an aggravated cost of Rs 18,932. Similarly,purchasing laser printers from Samsung at Rs 6,867,it supplied the same at two and a half times the cost,at Rs 16,315,making a profit of Rs 9,448. UPSs were purchased by Shreetron at Rs 2,670 each and sold at Rs 7,884,keeping a profit margin of Rs 5,213. Shreetron thus made a profit of Rs 2.75 crore in the deal.

The firm is already found to be involved in the NRHM scam in Uttar Pradesh,with anomalies in supply of computers and peripherals to NRHM worth Rs 8 crore.

As per the CAG report,the records of the ICDS directorate claimed that due to paucity of time,tender process was avoided in purchase of these 820 computers. The CAG found the claim to be incorrect,because during the check test by the CAG team,at least 31 of these computers were lying idle with the directorate due to lack of electricity connections.