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This is an archive article published on February 7, 1998

CBI raids hospitals over "bandage scam"

NEW DELHI, February 6: The CBI today raided several government hospitals and the offices of the Association of Corporations and Apex Societi...

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NEW DELHI, February 6: The CBI today raided several government hospitals and the offices of the Association of Corporations and Apex Societies of Handlooms (ACASH) in connection with the supply of sub-standard medical equipment worth crores of rupees to these hospitals CBI sources said that the raids began this morning simultaneously at the Safdarjung hospital, the Lok Nayak hospital, the Deen Dayal Upadhyay hospital and the All India Institute of Medical Sciences (AIIMS). The raiding party is understood to have seized several incriminating records relating to the supply of spurious bandages and gauze cloth to these hospitals by ACASH.

A senior CBI official associated with investigations into what has been dubbed as the `Bandage Scam’ said that the raids were expected to continue through the night and tomorrow morning. Altogether 11 premises including the government hospitals and the residential premises of some officials have been searched as part of the major operation, he added. CBI officials alsosearched the offices of ACASH at the Pragati Maidan complex and took away for scrutiny several records relating to the supply of bandages and other medical equipment to government hospitals. Senior officials of ACASH and the government hospitals which received the supplies are also likely to be questioned in connection with their alleged involvement in the scam.

The CBI had earlier registered an FIR in connection with the scam after conducting preliminary raids at a few government hospitals last year. The bandages and other surgical dressing were later sent for quality tests and were proved to be of substandard quality. The scam pertains to the supply of poor quality handloom surgical dressings by ACASH to various government hospitals in Delhi and that too at prices which were almost double of what were being offered by private suppliers. The highly inflated rates were “justified” by ACASH on the grounds that they were the official prices approved by the Union Textile Ministry.

A Delhi-based apex bodyof handloom manufacturers all over the country, ACASH is already under the scrutiny of the CBI for alleged bungling in the supply of dhotis and saris worth Rs 200 crore to the Bihar government. The Bihar government has alleged that the dhotis and saris supplied by ACASH were not only sub-standard but made on powerloom instead of handloom.

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