Madhya Pradesh Acts Against 392 Civic Officials In Rs 1,134 Crore Procurement Probe

Madhya Pradesh has acted against 392 officials, among them 135 Chief Municipal Officers, after a review of suspected civic procurement lapses and a viral clip in which urban local body staff were warned. Seven officials have been removed from service. The state has also moved against more than 80 contractors and suppliers, and it has recovered about Rs 3-4 crore from officials and employees over irregular payments.

The action comes as the Madhya Pradesh Lokayukta probes alleged irregularities in purchases worth nearly Rs 1,134 crore by urban local bodies. The case gained wider attention after a clip showed Additional Chief Secretary Sanjay Dubey warning officials that such lapses would not be tolerated.

Dubey linked the action to a departmental review in which he confronted municipal officers over discrepancies in payments made for procured goods. “The greater the irregularity and the more serious the negligence, the stronger the action taken against the person concerned,” he said. “We recovered around Rs 3-4 crore from officials and employees who had made irregular payments. We took action against more than 80 contractors and suppliers who had provided these materials or services… The process is continuing,” he said.

Viral Video Context

The footage was from a training session held by the Urban Administration and Development Department for municipal commissioners, CMOs, sub-engineers and other officials. In it, Dubey highlighted large price differences for the same products bought by different civic bodies.

Dubey said the clip came from a routine training session. “In the Urban Administration Department, we make an effort to call officials every six months to explain our expectations, how to ensure quality in their work, and train them in new techniques. The video that has surfaced is an excerpt from a training session attended by all municipal commissioners, CMOs, sub-engineers and other officials. They were briefed on how we monitor their various activities and instructed not to engage in any irregularities. They were also told to avoid actions that could have adverse consequences for them, damage the government’s image or lead to excessive expenditure,” he said.

He also told officials that the department was already tracking procurement patterns closely. “I am telling you where, how much, what was purchased, and at what rates you are procuring. All of this is well within our knowledge,” he said. He added, “Now do not assume that we cannot see what you are doing.”

Dubey issued a direct warning in the same session. “Last year I didn’t pay as much attention, but from this year onward, this will not be pardoned. Let me make this very clear to you,” he said. “Action will definitely be taken against you if you make this kind of mistake,” he said.

Price Gaps Exposed

The review flagged sharp price gaps.

One local body paid Rs 5 for a litre of phenolic disinfectant, while another booked the same item at Rs 33,500. A garbage vehicle was priced at Rs 2 lakh in one municipality and Rs 6 lakh in another, with just four extra dustbins included.

Dubey alleged that some officials had “simply added four dustbins, pocketed the money.” The review also found that a 60-watt LED light was bought for Rs 306 by one body while a Bhopal order listed it at Rs 11,800 per light.

He described that higher figure as “an extreme outlier beyond the upper limit” and said the median price was around Rs 4,000. “I’m not even asking you to purchase at the lowest rock-bottom price,” he said.

Anshuman Raj, Additional Managing Director of the Madhya Pradesh State Electronics Development Corporation, presented figures showing that 374 urban local bodies spent about Rs 1,134 crore on the Government e-Marketplace over three years. The estimate said nearly Rs 250 crore could have been saved if those purchases had matched average prices.

Dubey spelt out that estimate at the review. “If we had procured items at just the average price, not even the lowest rate, we would have saved Rs 250 crore on GeM alone, nowhere else,” he said.

The review looked at spending on garbage tipper dumpers, streetlights, octagonal poles and disinfectants from about 1,200 vendors. Jabalpur spent the most. The Lokayukta probe will examine purchase orders, invoices and vendor details.