Madras High Court
Karur Hdpe Filament And Bednets vs Union Of India on 16 May, 2025
Author: B.Pugalendhi
Bench: B.Pugalendhi
W.P(MD)No.22612 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Reserved on : 02.04.2025
Pronounced on : 16.05.2025
CORAM:
THE HONOURABLE MR.JUSTICE B.PUGALENDHI
W.P(MD)No.22612 of 2024 and
WMP(MD) No.24721 of 2024
Karur HDPE Filament and Bednets
Manufacturers Welfare Association,
Represented by its President,
A.R.Malaiyappasamy,
No.19, Industrial Estate,
S.Vellalapatti (Post),
Karur – 639 004.
Tamil Nadu. ... Petitioner
Vs
1.Union of India,
Through the Secretary,
Ministry of Home Affairs,
New Delhi - 1.
2.The Superintendent of Police,
Central Bureau of Investigation,
8th Floor, Anti-Corruption - 1,
Lodhi Road,
Jawaharlal Nehru Stadium Marg,
CGO Complex,
New Delhi - 110 003.
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W.P(MD)No.22612 of 2024
3.Ministry of Chemicals and Fertilizer,
Represented Through the Secretary,
Department of Chemicals and
Petrochemicals,
Shastri Bhawan,
New Delhi - 110 001.
4.Hindustan Insecticides Limited,
2nd Floor, Core-6,
Scope Complex,
7, Lodhi Road,
New Delhi - 110 003. Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution
of India, praying this Court to issue a Writ of Mandamus, directing
the respondent No.2 to complete its inquiry within stipulated time as
directed by this Court and take appropriate action under the law,
based on the representations dated 06.03.2024, 09.04.2024,
17.04.2024 and 07.06.2024.
For Petitioner : Mr.Adarsh Ramanujam for
Mr.K.Ganeshamoorthy
For R1 & R3 : Mr.K.Govindarajan
Deputy Solicitor General
For R2 : Mr.C.Muthusaravanan
For R4 : Mr.R.Murali
For petitioner in
impleading petition : Mr.Arun C. Mohan for
Mr.R.Prasanna
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W.P(MD)No.22612 of 2024
ORDER
The petitioner, claiming to be the President of Karur HDPE Filament and Bednets Manufacturers Welfare Association, interested in the manufacturing of Insecticidal Mosquito nets, has submitted representations on 06.03.2024, 09.04.2024, 17.04.2024 and 07.06.2024 that a fraud has been committed by the fourth respondent/the Hindustan Insecticidal Limited, in procurement and supply of mosquito nets to the Government of Jharkand and Central Medical Survey Services Society/CMSS, New Delhi and approached this Court, seeking a Mandamus, to direct the second respondent to complete the inquiry and take appropriate action on his representations.
2.The case of the petitioner is that the fourth respondent/Hindustan Insecticides Limited (HIL), a Public Sector Company, has obtained a contract from the Government of Jharkand and Central Medical Survey Services Society/CMSS, New Delhi, for 3/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm ) W.P(MD)No.22612 of 2024 supply of Mosquitto nets for public use. These mosquitto nets were procured by the Government of Jharkand and Central Medical Survey Services Society/CMSS, New Delhi at the rate of Rs.290/- per unit from the fourth respondent. The fourth respondent has projected that these nets have been procured from M/s. Mohinder Kaur Knitting Private Ltd, at the rate of Rs.145/-. According to the petitioner, the said M/s. Mohinder Kaur Knitting Private Ltd is a Shell Company and said to have procured the materials through another Shell company namely, M/s.JP Polymers at the lower rate of Rs.84/- per unit.
3. The petitioner Association has lodged a complaint to the second respondent/CBI on 14.03.2023 with regard to the procurement of Long Lasting Insecticidal Nets (LLINs), by a public Sector Company, namely, Hindustan Insecticides Limited, New Delhi (HIL). The Central Medical Services Society (CMCSS) has procured more than 40 million LLINs at the rate of Rs.155 to Rs. 175 per net. The Government of Jharkand has floated a tender in 4/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm ) W.P(MD)No.22612 of 2024 the year 2022 for procurement of 48,000/- LLINs. The Director (Marketing) of HIL had vested interest with one M/s. Science Si-Fi and this company is a intermediary Company, wherein, one Mr.Shashank Chaturvedi, Marketing Director of HIL is a partner along with one Mr.Sathish Kumar Singh. M/s. Science Si-Fi does not have any manufacturing facilities to produce LLINs and it acted as an intermediary company. The LLINs were procured through Shell Companies at the rate of Rs.60/- and supplied at the rate of Rs.380/- per net. M/s. Science Si-Fi has supplied seven Lakhs nets to HIL, through its registered vendor, namely, M/s.Mohinder Kaur Knitting from Raipur. In turn, M/s.Mohinder Kaur Knitting supplied the nets to HIL at a higher price. Since the petitioner came to know that a fraud has been committed by the fourth respondent, he has lodged a complaint, in the capacity of the Secretary of Karur HDPE Filament and Bednets Manufacturers Welfare Association, Karur.
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4.In response to this writ petition, the Inspector of Police, CBI has filed an interim report on 14.12.2024. The petitioner has projected that a Public Sector Company, which obtained an order from the Government of Jharkhand has procured LLINs through Shell Companies and supplied the same at the rate of Rs.290/-, thereby, causing loss of Rs.145/- per net to the Government. Therefore, this Court, by its earlier order, dated 12.02.2025, directed the second respondent/CBI to ascertain as to whether M/s. JP Polymers and M/s. Mohinder Kaur Knitting Pvt Ltd., through which, the fourth respondent said to have procured the nets, are having any manufacturing facilities to manufacture LLINs and the actual cost of production and the cost, which has been shown by HIL as procurement cost.
5.The second respondent/CBI has filed an interim Status report on 01.04.2025, in which, it is stated that M/s. VKA Polymers has supplied these LLINs through their proxies M/s. JP Polymers and M/s.Mohinder Kaur Knitting Pvt Ltd at much lower price than 6/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm ) W.P(MD)No.22612 of 2024 those quoted by L1, M/s. Shobikaa Impex Pvt Ltd., at a cost of Rs.62.17/- per unit and Rs.65.17 per unit. After execution of the purchase orders indirectly through M/s. VKA Polymers, M/s. VKA Polymers was again empaneled by Hindustan Insecticides Limited, on 28.07.2022. The investigation officer found that the empanelment of the said VKA Polymers was intentionally kept in abeyance for executing the job work through M/s. JP Polymers and M/s.Mohinder Kaur Knitting Pvt Ltd., M/s.Mohinder Kaur Knitting Pvt Ltd., was given purchase orders for 9.31 Lakhs LLINs, however, it had the capacity to manufacture 75,000 nets per month, as per the report of HIL itself.
6.Interim report of the second respondent reveals that there are certain prima facie materials available in the complaint of this petitioner and therefore, it needs to be prosecuted.
7.In view of the above, this writ petition is disposed of with a direction to the second respondent/CBI to proceed with the 7/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm ) W.P(MD)No.22612 of 2024 investigation and conclude the same as expeditiously as possible. No costs. Consequently, connected Miscellaneous petitions is closed.
16.05.2025 NCC :Yes/No Index :Yes Internet:Yes vrn 8/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm ) W.P(MD)No.22612 of 2024 To
1.The Secretary to Government, The Tamil Nadu Adi Dravidar and Tribal Welfare Department, Secretariat, Chennai.
2.The Commissioner, The Tamil Nadu Adi Dravidar and Tribal Welfare Department, Cepakkam, Chennai - 600 005.
3.The District Collector, Dindigul District, Dindigul.
4.The District Adi Dravidar And Tribal Welfare Officer, Dindigul District, Dindigul.
5.The Special Tahsildar, Adi Dravidar Welfare - Unit - 1, Dindigul District, Dindigul.
6.The Secretary, Health and Family Welfare Department, Government of Tamil Nadu, 4th Floor, Fort St. George, Secretariat, Chennai 9/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm ) W.P(MD)No.22612 of 2024 B.PUGALENDHI, J.
vrn Pre-Delivery Order made in W.P(MD)No.22612 of 2024 and WMP(MD) No.24721 of 2024 16.05.2025 10/10 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/05/2025 07:14:27 pm )