Delhi govt bans direct hospital purchases, mandates all procurement through central agency to curb inflated prices

New Delhi: The Delhi government has barred hospitals in the national capital from buying medical devices, consumables, equipment and machinery directly, asking them to make all purchases exclusively through the government's e-procurement process.

"Direct purchases or cart-based procurement on the GeM (Government-eMarketplace) portal by hospitals are strictly prohibited," the state health ministry said in an order, warning disciplinary or legal action in case of any deviation.

The government's Central Procurement Agency (CPA) will "solely" handle all demand and bidding processes, it said.


The move aims to ensure transparency and adherence to procurement norms, the ministry said in the order dated June 4. The state health minister has got to know that certain hospitals and institutions have been procuring medical devices, consumables, equipment and machinery through direct purchases or by using GeM's cart feature, it said.

The practice has led to "inflated prices, significant price discrepancies, and raises serious concerns of audit non-compliance," it added.

"No hospital or institution is authorised to undertake cart purchases or initiate bidding directly," the ministry said.

Even in the case of exceptional or emergency situations where immediate procurement via GeM cart is unavoidable, the institution has been asked to submit the demand to the CPA.

"The CPA will assess the urgency and coordinate procurement on behalf of the hospital," the order said.

Any deviation from these directives "may result in disciplinary and or legal action as deemed appropriate by the competent authority," the ministry said.

The order is issued with the approval of Delhi health minister Pankaj Kumar Singh and is to be strictly implemented by all concerned officers and institutions, it added.