UP CM orders investigation into irregular construction contracts

A major irregularity in the Uttar Pradesh Medical Education Department has recently come to light. The department reportedly flouted regulations regarding the establishment of medical colleges. According to allegations that have surfaced, over Rs 400 crore in contracts have been awarded for the establishment of 14 medical colleges under the PPP (Public-Private Partnership) to benefit a certain firm.

This has also been brought to the attention of Chief Minister Yogi Adityanath, who ordered an investigation and directed the Finance Department to freeze all payments related to this contract. Principal Secretary Alok Kumar has been accused of disregarding rules to benefit his preferred firm by securing the contract. An investigation is now underway.

In Uttar Pradesh, 14 medical colleges are being established under the PPP model, requiring the procurement of furniture and equipment. The Medical Education Department awarded a contract worth over Rs 400 crore to a firm called Heights, which is a PSU (Public Sector Undertaking) under the Central government.

In this case, a government order was issued, directing the department to pay a 2% consultancy fee to the company, and approximately 50% of the tender amount was given as an advance. Obtaining Cabinet approval is necessary for such significant expenditure, but the contract was awarded without the required approval.

However, the Medical Education Department assigned the responsibility of procuring furniture and equipment for all 14 medical colleges to the Heights Company. Now, the Heights will oversee the tender process. For this, the Heights company has been nominated to receive a 2% consultancy fee by the department.

In addition, approximately 50% of the tender amount has been paid as an advance. While investigation is underway, it remains to be seen how far these irregularities go and what the resulting political fallout might look like.