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Three senior officials, who retired from the Health Department and three proprietors of two firms, have been arrested by the Vigilance and Anti Corruption (VAC) wing of the territorial police in connection with alleged irregularities in the purchase of drugs and medical equipment and violation of norms, including the General Financial Rules, during the 2018-19 period. The VAC wing identified the arrested persons as former Directors of Health Department K. V. Raman, Mohan Kumar, former deputy director and programme manager of National Rural Health Mission J. Allirani, proprietor of Padmajothi Agency P. Mohan and partners of Sri Sairam Agency N. Punitha and R. Nandakumar. The accused have been remanded to judicial custody. The latest arrest of six persons was on the basis of an inquiry conducted by VAC wing in a case registered in 2023 of alleged corruption in the purchase of drugs following a complaint filed by Officer on Special Duty, Health Department, Marie Josephine Chitra. On receipt of the complaint, the agency had then registered a case against S. Natarajan, who was working as a pharmacist and other officials of the NRHM under sections 409 (punishment for criminal breach of trust by the public servant), 420 (punishment for cheating) read with 34 (criminal act involving two or more persons) of Indian Penal Code (IPC) and 13 (1) of Prevention of Corruption Act. After registration of the case, Natarajan was then arrested and his service terminated. Subsequent investigation into the case revealed that the pharmacist had floated two benami companies — Shri Padmajothi Enterprises and Sri Sairam Agency in the name of his wife Punitha and friends. “The investigation revealed the role of senior officials in the Health Department in adopting fraudulent means in the procurement process. The arrest of three officials does not mark conclusion of the probe, and more arrests are likely in the coming days,” said an official. The accused adopted fraudulent means to procure iron folic acid tablets and syrup, calcium tablets, iron sucrose injections and oral glucose for patients, including pregnant women, for distribution at primary and community health centres and educational institutions. The government had incurred a loss of more than ₹2 crore as huge quantities of the medicines were recalled in 2020 itself after side-effects emerged in people who were administered the medicines, said a source in the Health Department. “The medicines were of substandard quantity. Some medicines contained sediments, and the Vitamin tablets caused vomiting and sickness in children. In fact, there were several complaints against Mr. Natarajan, who was only a contract employee and the then Lieutenant Governor, Kiran Bedi, had ordered an internal audit in the procurement of medicines. The VAC wing probe will shed more light into the shady deals in the procurement process,” the source added.
