MP ULBs under scanner over huge price differences in purchases; ACS warns officials of action

These anomalies in purchases made by various ULBs over the past three years were flagged by senior officials of the Urban Development and Housing Department at a recent meeting with representatives of various ULBs in Bhopal.
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BHOPAL: Glaring discrepancies in procurement costs by urban local bodies (ULBs) across Madhya Pradesh have come under scrutiny, with officials flagging wide variations in the prices paid for identical items, including garbage vehicles, disinfectants, GI poles and LED bulbs.

A ULB purchased a garbage vehicle for Rs 2 lakh, while another bought the same vehicle, inclusive of four dustbins, for Rs 6 lakh. Similarly, a Nagar Parishad in western Madhya Pradesh procured phenolic disinfectant, commonly known as phenyl, at Rs 5 per litre, while another ULB elsewhere in the state reportedly paid Rs 33,500 for it.

The discrepancies also extend to lighting equipment. One ULB purchased a 60-watt LED bulb for Rs 306, while the same item was bought by a ULB in state capital Bhopal for Rs 11,800 per bulb.

In another instance, a Nagar Parishad in the Bundelkhand region has been continuously purchasing GI octagonal poles, spending Rs 97 lakh on them. Officials have questioned whether sufficient space is available to install such a large number of poles.

These anomalies in purchases made by various ULBs over the past three years were flagged by senior officials of the Urban Development and Housing Department at a recent meeting with representatives of various ULBs in Bhopal.

In a viral video, the bureaucratic head of the state urban development and housing department, Additional Chief Secretary (ACS) Sanjay Dubey, can be seen telling the officials. “You may think that you have purchased this or that and that nobody is finding out. Let me tell you that we know what you are buying, where you are buying it, in what quantities, and at what prices.”

“Do not assume that we cannot see what you are doing. We do not always have enough time to take action against every individual, but we are taking action starting this year because I have already made this clear on several occasions. So, we are showing you how we operate and what we are examining. We can identify the irregularities taking place in every urban local body. You may choose not to disclose where your revenue comes from, but I know where you are spending your money, how you are spending it, and how much improper expenditure you are making,” Dubey said in a stern message to the officials of ULBs from across the state.

“Therefore, if any Chief Municipal Officer (CMO) or other official thinks that they can get away with something and nobody will be watching, that is not the case,” the ACS warned.

He also questioned why some civic bodies had purchased garbage vehicles costing as much as Rs 1.5 crore each despite not having enough wards to operate them. Dubey said the department was now monitoring such purchases.

The over 10 minutes long video, which is now doing rounds of social media, shows the detailed AI-based analysis of purchases worth over 1,134 crore, which have been made by 374 ULBs over the last three years, through the GeM portal alone.

In the comprehensive presentation, Anshuman Raj, the additional MD of MP State Electronic Development Corporation (MPSEDC) said, “Basically, this entire exercise began when I was an SDM in 2023. There was a municipality under my jurisdiction where a complaint was received stating that Rs 60 lakh had been spent on purchasing LED bulbs. When I called the officials in for an explanation, I discovered that they had purchased 200 LED bulbs for Rs 60 lakh. Just 200! I then thought that since there were three municipalities under my jurisdiction, I should examine all three. After checking those three, I thought we should examine the entire district. Then I thought we should look at the entire state. Eventually, I was instructed to expand the analysis to cover the entire state and multiple years.”

Meanwhile, with the viral video triggering a major political controversy in the state, MP’s minister of state for urban development and housing department Pratima Bagri assured high-level probe followed by action against all those found in the alleged irregularities.

“If any work is carried out within the department, whether it involves procurement or construction, it is monitored. If any irregularity is found during the monitoring, the department investigates the matter and takes action against those responsible. Strict action has been taken in similar cases in the past as well. We can provide you with a list of such cases if required. The video that has gone viral is in our knowledge. We will conduct a high-level inquiry and take appropriate action. Whoever is found involved will face action,” she said.

Earlier in the day, Madhya Pradesh Congress president Jitu Patwari attacked the state government over the issue, describing corruption as a “cancer” spreading through the state's roots. He alleged that ministers, employees and officials were repeatedly coming under scrutiny over corruption-related matters.

“Corruption has spread through the roots of Madhya Pradesh like cancer. We have been saying this repeatedly. Ministers, employees and officials are repeatedly coming under the scanner for corruption. What kind of message does this send? The Additional Chief Secretary has brought this issue to the attention of the state, stating that bulbs costing Rs 5 were being purchased for as much as Rs 30,000. This is the height of corruption. I thank the ACS and commend him for bringing this to light. Nonetheless, I urge him to take action, as he himself is part of the department.”

Importantly, the urban development and housing department is headed by Kailash Vijayvargiya, who is the senior most cabinet minister in Dr Mohan Yadav-led government.

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