Kashmir News Bureau Exclusive
Srinagar, July 5(KNB): Serious allegations of financial mismanagement, favoritism, and gross violations of General Financial Rules (GFR) have surfaced at the Sher-i-Kashmir Institute of Medical Sciences (SKIMS), with M/S Gousia Fayaz—the firm contracted for sanitation services—at the center of the storm.
As per Government Order No. SIMS 325,31/2019;_822_32 dated 28/04/2022, M/S Gousia Fayaz was allotted sanitation services at SKIMS for a period of two years. A formal agreement was executed on 21st May 2022 between the Director of SKIMS and the said contractor. The scope of the contract was strictly confined to sanitation duties and water removal from allotted areas in case of leakage.
However, ground realities paint a starkly different picture. Instead of deploying its manpower for sanitation work, M/S Gousia Fayaz’s employees have reportedly been absorbed into other departments such as MRD, clerical sections, and even as nursing orderlies—roles entirely outside the purview of the contract. Sanitation at the institute has become a neglected duty, while the contractor continues to enjoy undue support from certain influential officers within SKIMS.
What raises deeper concern is the extension of the contract to M/S Gousia Fayaz beyond the originally sanctioned two years—now running into four years—without following due process, and in blatant violation of GFR norms.
According to the terms of the contract, SKIMS was to provide certain machinery to the contractor and in return, the contractor was liable to pay a rental amount of ₹2,25,426 for these “left-out machines.” Shockingly, no such payments have been made to date.
Moreover, the contractor was bound to supply high-quality cleaning materials, as per contractual standards. Contrarily, substandard products have been allegedly used, the quality of which can be verified by specimen samples readily available for scrutiny by investigative agencies.
The contract also mandated that the working capital should sustain operations for at least 2-3 months in case of payment delays due to unavoidable circumstances. However, contrary to these terms, the contractor was granted out-of-turn payments, including in cash via cheques drawn from CD-165—funds meant for other budgeted and audited purposes. These payments were routed outside treasury procedures, allegedly to evade tax liabilities and possibly to facilitate kickbacks to certain officials.
It has also been revealed that these payments were released even when M/S Gousia Fayaz failed to pay statutory wages and contributions under labor laws. The Labour Commissioner, Srinagar, has issued a letter received by director skims no 479 dated 19/02 2025 folowed by EPFO/ sgr /comp /199-200 dated 16/04/2025 declaring the contractor as a defaulter in remitting ESIC and EPF contributions for 234 laborers. Alarmingly, the Labour Department has no record of these 234 employees—raising serious concerns of ghost workers and fund misappropriation.The letter was forwarded to Principal SKIMS medical college also even then he was technically qualified in sanitation tender this month and his financial bid was opened.
Despite the Income Tax Department having seized the contractor’s official account for tax evasion, payments continued to be disbursed to his personal account—again from CD-165—over a period of years, amounting to crores.
According to sources, the SKIMS parking contract was also granted to the same contractor. Despite multiple extensions over several years, the latest tender process initiated in 2024 led to the identification of the L1 bidder. However, in a clear act of favoritism, the Letter of Intent has not been issued to the new L1 bidder, allowing M/S Gousia Fayaz to continue operations unlawfully.
Furthermore, sources revealed that the monthly revenue—earmarked for SKIMS from the parking facility—has not been deposited by the contractor for the past eight months. The pending dues have now crossed ₹80 lakhs, yet no concrete action has been initiated by the authorities to recover the amount.
The entire episode raises alarming questions about institutional accountability, transparency, and the manipulation of systems to favor a single contractor—leaving no room for fair competition. Such acts are not only in contempt of the GFR and labor laws but are also in direct violation of Article 14 of the Constitution of India, which guarantees equality before the law.
The scale of financial irregularities and institutional negligence calls for immediate intervention by anti-corruption and enforcement agencies. A thorough investigation into the matter is imperative to safeguard public funds and restore integrity within the institution.(KNB)