Rs 11,800 LED lights, Rs 33,500 phenyl: Madhya Pradesh officials flag civic purchase gaps

A review of purchases by 374 urban local bodies in Madhya Pradesh has revealed huge price variations for similar products. Additional Chief Secretary Sanjay Dubey has warned officials of strict action if procurement irregularities are found.

In Short

• Analysis covered GeM purchases by 374 urban local bodies over three years
• Goods worth ₹1,134 crore were purchased through the government marketplace
• Average-rate purchases could have yielded estimated savings of ₹250 crore

From a litre of phenolic disinfectant priced at Rs 5 in one urban local body to a similar product costing Rs 33,500 elsewhere, and a 60-watt LED light purchased for Rs 306 in one place but recorded at Rs 11,800 in Bhopal, a government procurement analysis has raised serious questions about public spending in Madhya Pradesh.

A video of Urban Administration and Development Department Additional Chief Secretary Sanjay Dubey warning officials about procurement irregularities has been circulating on social media since Wednesday.

During a meeting, a presentation by Anshuman Raj, Additional Managing Director of the Madhya Pradesh State Electronics Development Corporation (MPSEDC), highlighted substantial price differences in purchases made through the Government e-Marketplace (GeM) portal.

RS 1,134 CRORE SPENT, RS 250 CRORE IN POTENTIAL SAVINGS

According to the presentation, 374 urban local bodies spent approximately Rs 1,134 crore on purchases through GeM over the past three years. The analysis estimated that around Rs 250 crore could have been saved if goods had been purchased at average rates.

However, the estimated savings alone do not establish corruption. Verifying the differences would require examining product specifications, quality, quantities, installation costs and payment records.

DISINFECTANT PRICED FROM RS 5 TO RS 33,500

The presentation cited phenolic disinfectant costing Rs 5 per litre in one urban local body, compared with Rs 33,500 for a similar product elsewhere. The reasons for the disparity remain unclear and require scrutiny of purchase orders, technical specifications and invoices.

RS 306 LED LIGHT IN ONE PLACE, RS 11,800 IN BHOPAL

A 60-watt LED light was reportedly purchased for Rs 306 in one location, while the recorded price in Bhopal was Rs 11,800. The total value of the Bhopal purchase was Rs 3.78 lakh.

The difference raises questions about whether the products had identical specifications and whether additional equipment or installation costs were included.

GARBAGE VEHICLE COST RS 2 LAKH IN ONE BODY, RS 6 LAKH IN ANOTHER

Dubey cited another example involving garbage collection vehicles. One urban local body reportedly purchased a vehicle for Rs 2 lakh, while another spent Rs 6 lakh on a similar vehicle supplied with four dustbins.

He raised concerns about possible cost inflation through additional items and questioned whether purchases were being routed through preferred parties. The claims require verification of the vehicles' specifications and procurement records.

DUMPERS, STREET LIGHTS ACCOUNT FOR CRORES

The presentation reported the following expenditure over three years:

• Garbage tippers and dumpers: Approximately Rs 65 crore
• Street lights: Approximately Rs 49 crore
• Octagonal poles: Approximately Rs 27 crore
• Disinfectants: Approximately Rs 18 crore

The figures highlight the need for competitive pricing, quality checks and transparent procurement practices.

ACS WARNS OFFICIALS OF ACTION

Dubey reportedly told officials that the department was monitoring what each urban local body purchased and the prices it paid. He said the department had taken a lenient approach in the previous year but would now act against procurement irregularities.

He warned that such lapses would no longer be tolerated. The next step is to verify the price discrepancies, establish whether procurement rules were followed and fix accountability wherever wrongdoing is substantiated.

- Ends