BMC Health Committee Chairman Seeks Stay On KEM Hospital Medical Store's 5-Year Contract Extension, Alleges Irregularities

Mumbai: Standing Committee member and BMC Health Committee chairman Harish Bhandirge has sought a stay on the proposal to extend the contract of M/s The Parel Chemist, which operates a medical store at KEM Hospital, for another five years, alleging possible irregularities and questioning why fresh tenders were not invited.

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Inquiry Into Proposal Demanded

In a letter dated October 21 to Municipal Commissioner Ashwini Bhide, Bhandirge urged the administration to withdraw the proposal or put it on hold and constitute an inquiry committee to investigate the matter. The proposal is scheduled to be placed before the BMC’s Improvement Committee on October 22.

The BMC has proposed extending the contract from August 20, 2026, to August 19, 2031, citing the contractor’s satisfactory performance, round-the-clock service and a 12.5% discount on printed medicine prices for patients. The 29-square-metre premises will attract a monthly compensation of Rs 2.20 lakh in the first year, with a 10% annual increase. The extension requires approval from the Improvement Committee and/or the Municipal Corporation.

Generic Medicine Outlet Raises Questions

The existing contract ran from August 20, 2021, to August 19, 2026. However, Bhandirge has questioned the decision to extend it when space at KEM Hospital has already been identified for a generic medicine shop to be operated by NACOF India Ltd, which has been allotted space for setting up 50 generic medicine outlets in BMC hospitals.

According to the letter, the BMC and NACOF India’s Mumbai branch conducted a joint site inspection and prepared a report to identify suitable space for the proposed outlet. Bhandirge also said a reminder had been sent to Deputy Municipal Commissioner (Health) Sharad Ughade to take steps to facilitate the opening of the generic medicine shop.

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Questioning the rationale behind extending the existing operator’s contract despite the proposed generic medicine outlet, Bhandirge alleged that the move could involve serious irregularities. He asked why the administration had opted for an extension instead of inviting fresh tenders.

The chairman further pointed out that two letters concerning generic medicines had been sent to the Additional Municipal Commissioner (City), but the proposal was still being placed before the committee for approval.

Calling the administration’s alleged failure to take cognisance of the correspondence regrettable, Bhandirge said the issue was not merely about elected representatives being ignored but also about the interests of Mumbai’s citizens.

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