Delhi CS Naresh Kumars Sons Company Got AI Deal From Institute of Liver And Biliary Sciences

Delhi Vigilance Minister Atishi has alleged in a fresh report that Chief Secretary Naresh Kumar used his position to enable a lucrative collaboration between the Institute of Liver and Biliary Sciences and a company in which his son was a partner.

New Delhi: Delhi Vigilance Minister Atishi has alleged in a fresh report that Chief Secretary Naresh Kumar used his position to enable a lucrative collaboration between the Institute of Liver and Biliary Sciences (ILBS) and a company in which his son was a partner, government sources said on Friday.

Chief Secretary Denies Allegations

While there was no immediate response from the chief secretary, the ILBS in a statement denied the allegation of the award of any purchase order or payment to any software vendor for Artificial Intelligence (AI). Sources close to the chief secretary claimed that his son is not a signatory of any Memorandum of Understanding (MoU) between the company and the ILBS. He is not at all connected with the company in question as a shareholder or director or partner or employee, they further claimed.

Supplementary Report Submitted to Delhi CM

According to the supplementary report submitted to Delhi Chief Minister Arvind Kejriwal, the company was formed just 20 days after Kumar's appointment as chief secretary on April 20, 2022. The 18-page report follows an earlier one submitted by Aitishi on a land acquisition matter in southwest Delhi's Bamnoli village. The minister in her report also recommended Kumar's suspension and sending the matter to the CBI for investigation, the government sources said. The earlier 670-page report had alleged prima facie complicity of Kumar in a land acquisition matter and claimed that it would have involved a windfall gain of Rs 897 crore for stakeholders.

MoU Signed Between ILBS and Company

According to the latest report, Kumar, as chief secretary, also served as chairman of the ILBS governing council which, in a meeting on December 6, 2022, decided to set up a virtual or augmented reality lab at the institute. The lab, meant for conducting research on the simulation of various endoscopy procedures using augmented reality, was launched by Kumar on January 14, 2023. A MoU between the company of Kumar's son with ILBS to collaborate on conducting research and studies on the simulation of various endoscopy procedures using augmented reality was executed on January 24, 2023, the report alleged.

Lack of Competitive Bidding

The company was chosen on a nomination basis without any competitive bidding process and without any due diligence of competence or experience in the healthcare sector or virtual reality, it further charged. It claimed that the MoU also provides a huge scope for profiteering to the company by providing it with joint intellectual property rights for any IP developed through this project and a 50 percent share of profits by both parties for any future commercialization of work arising out of this collaboration.

Recommendations

The report of the minister also recommended that the MoU between ILBS and the company be immediately terminated, and access to all data and privileges be withdrawn. All files pertaining to the arrangement with the company be called for from ILBS and a detailed investigation be conducted into the matter, it recommended.

ILBS Denies Allegations

In its statement denying the charge, the institute said, "ILBS confirms that it did not issue any purchase order or made any payment to any AI software developer or company. These allegations are totally baseless and are without merit. The ILBS firmly reiterates its commitment to transparency and adherence to ethical practices in all its endeavors. Any insinuation suggesting otherwise is entirely unfounded," it added.

Delhi Government Response

The fresh report claimed that if the ILBS expertise and database were made commercially available through competitive bidding, large sums of revenue would have accrued to the institute, it claimed. Instead, it was provided free of cost to a seven-month-old start-up with no experience or expertise, the report further charged. In its response to the institute, the Delhi government said the ILBS statement does not deny that the MoU was signed with the company for the development of AI software without issuing a tender. It also does not deny the findings in the report that the MoU enables the company to have unrestricted access to valuable datasets and medical expertise of ILBS worth hundreds of crores of rupees, the Delhi government said in a statement.

The allegations made by Delhi Vigilance Minister Atishi against Chief Secretary Naresh Kumar have sparked a controversy and raised questions about the transparency and integrity of the government's procurement process. The chief secretary has denied the allegations, and the ILBS has also issued a statement refuting the claims. The Delhi government has sought a detailed investigation into the matter, and it remains to be seen what the outcome of the probe will be.