The department purchased 60,000 units of rub and oil in 2013-14 at a cost of Rs 195 per 100ml. The actual cost was Rs 64. (Representative Image)
Four officials, including former director of medical and rural health services (ESI) Dr M Raju, former superintendent of the store section G Jeeva, and former assistant officials M Rakesh and N Nagalingam, were booked under the Prevention of Corruption Act, 1988, for causing a loss of Rs 1.59 crore to the exchequer, according to an FIR filed by Chennai City Special Unit-III of the DVAC on Sept 8. The action followed a preliminary inquiry initiated on the basis of a communication from the Director of Medical and Rural Health Services. The inquiry found that medicines had been purchased in violation of prescribed procurement procedures, at prices higher than the Running Rate Contract or from Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd (TAMPCOL).