AIIMS Faces Corruption Allegations Amid Rs 1.19 Crore Loss Over Inflated Glove Purchase: Report

Despite concerns from AIIMS officials, including Dr. Amit Lathwal, the institution proceeded with a Rs 3.22 crore glove purchase, resulting in a Rs 1.19 crore loss.

AIIMS Delhi Edited by
AIIMS Faces Corruption Allegations Amid Rs 1.19 Crore Loss Over Inflated Glove Purchase: Report

AIIMS New Delhi.

New Delhi: The All India Institute of Medical Sciences (AIIMS) in Delhi, one of the country’s premier medical institutions, is at the centre of a growing controversy regarding procurement irregularities and promotion of an official accused of sexual harassment.

Despite repeated requests from the Union Health Ministry in the past 15 months, the AIIMS administration has remained unresponsive, adding fuel to the fire of public concern.

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The matter at hand involves the procurement of 5.8 million high-quality, powder-free surgical gloves by AIIMS in May 2023. As per documents accessed by The Wire Hindi, the procurement process has sparked serious allegations of corruption and financial mismanagement.

Specifically, it is claimed that the AIIMS administration opted to purchase gloves at inflated prices, overlooking more affordable alternatives, resulting in considerable financial losses to the government.

The AIIMS Controversy: Gloves

In May 2023, AIIMS issued a call for tenders for the procurement of 5.8 million high-quality and powder-free surgical gloves, certified under Indian Standard (IS 4148). Of the 33 companies that submitted bids, only two were considered technically suitable to proceed beyond the initial stage – AS Healthcare and Braun Biotech Limited.

AS Healthcare bid Rs 12.47 crore for the gloves, at a rate of Rs 21.50 per pair, while Braun Biotech quoted a higher Rs 16.24 crore. Ultimately, AS Healthcare was awarded the contract on October 16, 2023.

However, a closer look at previous procurement activities raises serious questions about this decision.

In February 2023, the Cardiothoracic and Neurosciences Centre (CNC), under Dr Amit Lathwal, at AIIMS procured similar gloves from a different supplier, ASMA, at a significantly lower price of Rs 13.56 per pair. This raised eyebrows among some senior officials, who questioned why the same gloves were being procured at a much higher price just two months later, reported The Wire Hindi.

According to the report, the gloves acquired by CNC were declared “technically invalid” by the AIIMS’ Technical Specification & Evaluation Committee in August 2023.

But the same gloves (powder-free), the report observed, from the same brand were eventually purchased again by AIIMS, at a price that was Rs 6.19 lower than the ones from AS Healthcare.

In May 2024, AIIMS signed a contract with ASMA for the procurement of 60 lakh gloves over a one-year period, at a total cost of Rs 9.18 crore, which equates to Rs 15.31 per pair.

The powder-free gloves from the brand Truskin were procured by several other hospitals across India at rates ranging from Rs 14 to Rs 18.55 per pair during the same time.

Objections Raised

A key figure in the controversy is Dr Amit Lathwal, the additional medical superintendent in charge of the purchase. Lathwal raised concerns about the inflated pricing, even proposing the cancellation of the tender in light of the significant price differences.

Yet, his objections were overruled by AIIMS officials, including Deputy Director (Admin) Manisha Saxena, who recommended proceeding with the purchase, citing the urgent need for gloves.

Saxena’s proposal was approved by AIIMS Director M. Srinivas. Two days later, AIIMS procured a contract for 1.5 million gloves worth Rs 3.22 crore, with each pair priced at Rs 21.50.

If AIIMS had followed the CNC’s February 2023 pricing of Rs 13.56 per pair, the total expenditure would have been just Rs 2.03 crore—saving the government Rs 1.19 crore. Even purchasing the gloves at the May 2024 rate of Rs 15.31 per pair would have saved the exchequer nearly Rs 93 lakh, highlighted the The Wire Hindi report.

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The Health Ministry Gets Involved

In December 2023, a formal complaint was submitted to the Ministry of Health, along with documents outlining the discrepancies in procurement. The ministry acted swiftly, sending a letter to AIIMS on December 28, 2023, requesting an investigation and a report.

Yet, despite the ministry’s repeated follow-up letters in December 2024, AIIMS did not respond.

Dr Reema Dada, the institution’s media representative, claimed that AIIMS is conducting its own internal investigation, stated the report. Similarly, Neelam, an undersecretary at the Ministry of Health, declined to comment on the situation.