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Issues Involved:
1. Deliberate acts of omission and commission with culpable intention of State functionaries to abuse NRHM funds. 2. Irregularities in purchases of medicines, equipment, and other material relating to NRHM. 3. Omission of the State to take prompt corrective measures even after being fully acquainted with the irregularities being committed in the utilization of NRHM funds. Summary: Issue 1: Deliberate Acts of Omission and Commission with Culpable Intention The Court directed the CBI to conduct a preliminary enquiry into the execution and implementation of the National Rural Health Mission (NRHM) funds in Uttar Pradesh due to allegations of gross abuse and misappropriation by State functionaries. The CBI's investigation revealed a conspiracy to award contracts to M/s. Surgicoin Medequip Pvt. Ltd. for supplying O.T. Modular fitted with ACs. Accused individuals, including Dr. Pradeep Shukla, Babu Singh Kushwaha, Devendra Mohan, and Ravindra Rai, were implicated in demanding and accepting bribes to facilitate these contracts. The Court found sufficient evidence to support the allegations of conspiracy and corruption, leading to significant financial losses to the State exchequer. Issue 2: Irregularities in Purchases The charge-sheets detailed various irregularities in the procurement process, including the manipulation of tender processes, acceptance of exorbitant rates without market surveys, and the use of forged documents. Specific instances included the preparation of tailored specifications to benefit M/s. Surgicoin Medequip Pvt. Ltd., and the publication of tenders in limited newspapers to restrict competition. Witnesses corroborated these findings, highlighting the inflated costs and the lack of transparency in the procurement process. Issue 3: Omission of the State to Take Prompt Corrective Measures The Court noted that despite the detection of large-scale irregularities, no corrective action was taken by the State. The investigation revealed that the State Health Mission, responsible for overseeing the NRHM implementation, failed to convene regular meetings and exercise proper oversight. The Court criticized the selective investigation by the CBI, which did not fully explore the roles of all individuals involved in the NRHM's administration and implementation. Conclusion: The Court dismissed the applications u/s 482 Cr.P.C. filed by the accused, finding that the charge-sheets contained sufficient evidence to proceed with the trial. The Court emphasized the need for a thorough investigation and prompt trial to address the misuse of NRHM funds. Additionally, the Court directed the State Government to consider constituting special courts to handle cases involving large-scale misappropriation of government funds.
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