📷 Image: Wikimedia Commons / Ministry of Commerce and Industry (India)
Crime
11-Crore GeM Scam Exposed: One Man Uses Four Companies to Overcharge for Computers and UPS
✍️ Amar Ujala · Madhya Pradesh
🗓 02 Sep 2026, 06:47 PM
👁 3
A 10.99‑crore procurement deal by Madhya Pradesh’s Social Justice Department was uncovered as a fraud, with a single individual using four separate companies to place bids on the GeM platform and sell overpriced computers and UPS units.
A sting operation revealed that a 10.99‑crore purchase by the Social Justice Department of Madhya Pradesh was marred by fraud. The investigation found that one individual had set up four separate companies to bid on the government e‑marketplace, GeM, and secured contracts for computers and UPS units at inflated prices.
The tender process itself showed irregularities, with the same person’s entities submitting bids that were significantly higher than market rates. The supply chain was equally questionable, as the goods were delivered without proper quality checks and at prices that far exceeded standard procurement norms.
The Enforcement Directorate (ED) has opened a case, citing violations of the Prevention of Corruption Act and the Public Procurement Act. Officials say the fraud involved manipulation of the bidding process, misrepresentation of company credentials, and overcharging for essential equipment.
If the charges are upheld, the case could lead to significant penalties and a review of procurement procedures across state departments, highlighting the need for stricter oversight on GeM transactions.
The tender process itself showed irregularities, with the same person’s entities submitting bids that were significantly higher than market rates. The supply chain was equally questionable, as the goods were delivered without proper quality checks and at prices that far exceeded standard procurement norms.
The Enforcement Directorate (ED) has opened a case, citing violations of the Prevention of Corruption Act and the Public Procurement Act. Officials say the fraud involved manipulation of the bidding process, misrepresentation of company credentials, and overcharging for essential equipment.
If the charges are upheld, the case could lead to significant penalties and a review of procurement procedures across state departments, highlighting the need for stricter oversight on GeM transactions.