Amid the ongoing controversy over alleged corruption in the purchase of PPE kits during the COVID-19 pandemic, fresh revelations indicate that the state government suffered a loss of Rs 1 crore in the import of gloves.

The Lokayukta has launched an investigation into the distribution of inferior-quality hand gloves. The contract for importing the gloves was awarded to Agratha Avayon Eximin, a Kazhakoottam-based firm originally established for vegetable trading. The agreement stipulated the supply of one crore gloves at Rs 12.15 per unit.

However, an order issued on May 27, 2021, capped the maximum price of gloves at Rs 7 per piece. This directive was allegedly bypassed by Kerala Medical Services Corporation officials, who inflated the price by Rs 5.15. The computer-printed order was also tampered with by manually altering two of its provisions using a pen.

The clause requiring payments to be made within 45 days of invoicing was changed to five days. Similarly, the condition that the gloves must have at least 60% of their shelf life remaining was removed to favour the supplier.

The Rs 12.15 crore contract saw 50% of the payment, amounting to Rs 6.07 crore, made in advance at a time when there was no acute shortage of gloves in the state. The gloves, originally part of a consignment bound for UK hospitals from Malaysia, were redirected to Kerala for reasons that remain unclear.

The consignment delivered to Kerala also lacked critical labelling, such as the date of manufacture, expiry, or maximum retail price (MRP). A total of 41.6 lakh gloves were delivered within 15 days, after which the contract was terminated. However, the government has yet to recover Rs 1 crore from the supplier.

Agratha Avayon Eximin, a firm that transitioned from vegetable trading to medical equipment distribution in 2021, has not disclosed its annual turnover. Its official website remains non-functional, raising further questions about its credibility.