NEW DELHI: A major safety lapse has surfaced at the All India Institute of Medical Sciences (AIIMS), where fungus was detected in batches of medical supplies, including injectables used for brain swelling, eye blood pressure and intravenous drips.
The premier hospital has terminated its contract with the supplier, Pentagon Labs Limited, and barred the firm from bidding for tenders for the next two years.
According to documents reviewed by the TNIE, AIIMS had entered into a two-year agreement with Pentagon Labs on May 7, 2024, for the supply of crystalloid solutions, valid until May 6, 2026. The agreement came under scrutiny after multiple departments reported the presence of fungus growth in injections supplied by the firm.
These injectables were procured to treat conditions of swelling of the brain (cerebral edema), high ocular blood pressure and dehydration (intravenous fluids).
AIIMS issued a formal complaint letter to the company on July 4, directing it to replace 4,800 bottles from the contaminated batch within a week. The notice also warned the vendor of possible blacklisting if corrective measures were not taken. However, no replacement or response was received.
“The firm failed to adhere to contractual provisions despite ample opportunity and warnings, resulting in a risk to patient safety, disruptions in medical services, and erosion of public trust,” the termination order stated.
The institute noted that the vendor was given repeated chances to rectify the lapses, including a personal hearing, but continued to supply products of “sub-standard quality” with no improvement. In the interim, AIIMS was compelled to procure crystalloid fluids from the open market to avoid interruptions in patient care.
The hospital authority, in its probe, concluded that the company’s negligence amounted to gross misconduct, particularly in view of the potential danger to patients. “Fungal growth was found in many samples of the products manufactured by M/s Pentagon Labs Limited,” the hospital said.
The order further noted that Pentagon Labs had violated Clause 5.5 of the General Conditions of Contract, as well as procurement rules issued by the Finance Ministry in November 2021. Citing these provisions, the company has been formally debarred from future participation in AIIMS tenders and contracts for two years with immediate effect.