Satyameva Jayate

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Standing Purchase committee II member suspended and dismissed to facilitate irregularities; NIPER In Rajya Sabha again

RAJYA SABHA

————

List of Questions for WRITTEN ANSWERS

to be asked at a sitting of the Rajya Sabha to be held on Friday, May 4, 2012/Vaisakha 14, 1934 (Saka)

Change of faculty members in NIPER, Mohali

3153. WAGHMARE: Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether it is a fact that the change of faculty members in various Committees of National Institute of Pharmaceuticals Education and Research (NIPER), Mohali, Punjab in 2010, has led to a saving of approximately ` 40 lacs per annum in purchase of diesel and around ` 60 lacs on account of spare parts purchased due to such Committees;

(b) who are the members of these purchase Committees and whether they continued to be on such Committees; and

(c) if not, the reasons for changing them?

 It is remain to be seen what DOP have to say, However the truth is

Diesel was being purchased at NIPER without following General Finance Rule 2005 of GOI since inception till 2010. A good Samaritan stopped it.

Evidence:

1. Minutes of the meeting of Diesel Purchase committee

2. Letter of Mr. Jain, Finance committee member.

In a letter Dated: 08.04.11 to The Registrar & Member Secretary of Finance Committee Mr. Jain Wrote

Subject: Proceedings of 23rd meeting of the Finance Committee held on 25th March 2011 – minutes thereof

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11) In 2010 – 11 the budget allocation for repair & maintenance of building & engineering services, repair, & maintenance – machinery and lab utilities, repair, running & maintenance – vehicles was 185 lacs and actual spent was 149.27 lacs till February 2011. The budget proposals of 560 lacs are not justified and the same is to high and over 200% on the pervious year budget therefore my views of allowing maximum increase of 20% of the last year expenditure should be made after taking into account the substantial savings of around Rs. 1 Crore made by reconstituted committees in the case of diesel and spare purchases during 2010 – 11 and hence such budget proposal under these heads to should be restricted to 180 Lacs against Rs. 560 Lacs proposed.

XXXXXXXXXXXXXXXXX

Important points

1. As a Standing Purchase committee II member a faculty member was pointing out irregularities and ensuring transparency.

2. As a member of the institutional purchase committee, he stopped a number of wrongdoings and was instrumental in bringing about transparency in release of wages of contractual staff.

3. Based on his initiative, rules for purchasing Diesel is formulated and steady source of illegal income was stopped.

4. He is removed from Standing Purchase committee II suspended and dismissed to facilitate irregularities.

Now the question is who was ingesting the money of Illegal Diesel and spare parts purchase for last so many years?

Loss of fixed deposit by NIPER, Mohali

3140. DR. JANARDHAN WAGHMARE: Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether it is a fact that Comptroller and Auditor General has observed a loss of interests of ` 47 lacs approx. in Fixed Deposits by National Institute of Pharmaceuticals Education and Research (NIPER), Mohali, Punjab;

(b) if so, whether the matter has been examined by Government and the responsibility fixed in the matter; and

(c) if so, the details thereof and if not, the reasons therefor?

It is remain to be seen what DOP have to say, However the truth is

CAG (DPC Act 1971) Audit and inspection report on the account of NIPER for the year 2009-10 obtained By RTI. CVC has written a one and half page long para vividly describing how public money is misappropriated.

Relevant extract are as under:

Part-II-A         Serious irregularities

Para I            Loss of Interest-Rs. 49.56 lakh

The institute had been maintaining Endowment Fund (Corpus Fund) as per the directions (November 1997) of the Ministry of Chemicals & Fertilizers, Department of Chemicals & Petro-Chemicals, Govt. of India (GOI)

XXXX

Audit observed that as om 31^st March 2010, the institute was having balance of Rs. 25.24 crore in the Fund which was invested in fixed deposit in the State bank of Patiala, Mohali.

XXXX

Had the institute taken premature withdrawal of fixed deposit of Rs. 10.89 crore in March 2006/May 2006 which was inested at a interest rate of 7.25 persent and again invested it in fixed deposits at available higher interest rate of 8.10 present, the institute could have earned higher bank interest of Rs. 49.56 lakh (after adjusting interest loss of Rs. 16.84 lakh due to premature withdrawal of fixed deposit of Rs. 10.89 crore)

XXXX

It as also observed that the interest rate of fixed deposit investment of funds are being taken from the limited number (2-4 number) of banks which also lacked justification.

Caveat:

           I.     One justification could be nepotism/personal gain of person responsible of investment.

          II.     The same way Provident fund money were also invested causing loss of NIPER employees

On the contrary,

As per NIPER statutes Dated 30^th Oct 2003 Financial powers of Board of Governors are,

3.1.2 Functions and Powers

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(d)  to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the Institute and for that Purpose, to appointment such agents as it may think fit.

(e)  to fix the limit of the recurring and the non-recurring expenditure for a year on the recommendations of the Finance Committee.

(f)   Subject to the provisions of the act to invest any money belonging to the institute including any unapplied income in any manner it thinks fit or in the purchase of immovable property in India.

However all the investments were done by keeping BOG in dark. Only taking cryptic agenda like “to ratify the minutes of Finance committee”

Now the question is for who’s vested interest NIPER lost half a crore? Chairman Investment committee? Current officiating director was the chairman since 2001 till 2010

"GANG OF FOUR" Causing Irreparable Damage of NIPER, Mohali

After Pharmaceutical Nanotechnology another non performing assate of NIPER Technology Development Center (TDC) established in  year 2004, fail to fulfill entrustment of the Government. A reporte published in PHARMABIZ.com on April 30 2012 said so, 

the report says

Department of Pharmaceuticals (DoP) is planning to set up a National Centre for R&D in bulk drugs with a total cost of Rs.56 crore. The move is in view of the rising competition to the Indian bulk drug industry especially from China affecting the viability of several small units. As per the plans, the centre may be located at the National Institute of Pharmaceutical Education and Research (NIPER), Hyderabad. 

Department of Pharmaceuticals, Ministry of C&F, GOI looking at other NIPERs for importent task, beyond blue-eyed boy at Mohali.(!!!)

DoP moots National Centre for R&D in bulk drugs for helping sector

Joseph Alexander, New Delhi Monday, April 30, 2012, 08:00 Hrs  [IST]

Department of Pharmaceuticals (DoP) is planning to set up a National Centre for R&D in bulk drugs with a total cost of Rs.56 crore. The move is in view of the rising competition to the Indian bulk drug industry especially from China affecting the viability of several small units. As per the plans, the centre may be located at the National Institute of Pharmaceutical Education and Research (NIPER), Hyderabad, taking into account the large number of bulk drug players in Andhra Pradesh which accounted for 30 per cent of the sector, sources said.

WHY?? 
         TDC AT NIPER, Mohali USED AS MILKING COW, NOTHING ELSE

The National Institute of Pharmaceutical Education and Research set up a Technology Development Center (TDC) in the year 2004. The pilot plant and machinery commissioned in June 2004. Since 2004 the NIPER had been providing services of plant and machinery installed in the TDC to M/S Ranbaxy Laboratory Private Limited without fulfilling the National objective.

CAG (DPC Act 1971) Audit and inspection report on the account of NIPER for the year 2010-11 obtained by RTI. Relevant extracts irregularity para 3 are as under:

NIPER worked out monthly expenses for running and maintenance to Rs. 12.60 for the period from 15th july 2008 to 14th July 2009 against which the usage charge were fixed 14.85 per month. (for a 15 crore facility only 2.25 lakh per month income?)

 Scrutiny in audit revealed that while preparing the cost sheet depreciation on cost of plant and machinery was charged at 10% since 2004 where as the depreciation on plant and machinery was provided at 15% in the annual accounts of the NIPER. This resulted in under estimate of cost by Rs. 15.56 lakh during 2010 only.

How much NIPER lost since 2004 till 2009? GOD only knows. Were everybody @NIPER BLIND?  At least one person was not. He pointed out anomalies in 15.10.10 long before the CAG did.

CAG (DPC Act 1971) Audit and inspection report again pointed out that "The RANBXY delayed the release of payment of usage charge of Rs. 1.37 crore fro the period 15th July 2010 to 31st March 2011 and the payment was actually received by the NIPER on 18th April 2011 for which reason were not on record."  

Simple CAG dude, if interest of 1.37 crore is distributed, how it will be put on record?

It is also not in record that NIPER was providing manpower for running TDC since 2004. Though RANBAXY in the MOU clearly mentioned that "Ranbaxy will only utilize and pay for plant and machinery not manpower" 


Then why manpower was provided by NIPER? That too 31 in number? Whereas teaching departments are suffocating for manpower? Obviously for vested interest of someone involved with TDC. If somebody is milking the cow, the milk is consumed by somebody naturally.

As per audit cost calculation is wrong, thus the money paid by Ranbaxy is less then running charge who is paying for that? The answer is non plan budget of NIPER and IEBR fund.

Amount over and above non-plan is extracted from IEBR, which is intended to use for research and teaching. Thus who is starving for the expense of feeding the milking cow? 


Obviously NIPER teaching and research Program.

Finally what is the recommendation of CAG? 


"Reasons for not exporting the possibility for the use of TDC for contract research development, 
less charging of depreciation in cost sheet, 
delay in respect of payment from the Ranbaxy and loss of Interest thereto, 
lack of adequate publicity for the marketing of the facilities in the TDC and 
not framing training modules for use of TDC facility by its students 


may be intimated to audit."