Inflated medicine bills caused ₹1.59 crore loss 12 years ago; DVAC: The wider industry impact

Inflated medicine bills caused ₹1.59 crore loss 12 years ago; DVAC: The wider industry impact

Chennai: Directorate of Vigilance and Anti-Corruption (DVAC) has registered a case against four former officials of the Directorate of Medical and Rural Health Services (ESI) for irregularities in the procurement of allopathy, siddha and ayurvedic medicines during 2013-14 and 2014-15.

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 ₹1.59 crore to the exchequer, according to an FIR by Chennai City Special Unit-III of DVAC. The action followed a preliminary inquiry initiated on the basis of a communication from Director of Medical and Rural Health Services. The inquiry found that medicines had been purchased in violation of prescribed procurement procedures, at a cost higher than the Running Rate Contract or from Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd (Tampcol).

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