Karnataka medical education minister and former health and family welfare minister Dr. AB Malakaraddy has sought an appointment with Lok Ayukta, the investigation arm of the government of Karnataka. The medical education minister has sought an appointment with Justice N Venkatachala, head, Lok Ayukta to clear his name in the recent multi-crore drug scandal unearthed by the Lok Ayukta.
Dr Malakaraddy said that his name was being unnecessarily drawn into the scam by some officials in the drug controller's office and he would like to clear his name. He had sought an in camera session with the Lok Ayukta.
Dr Malakaraddy denied that he had never interacted with any of the junior level staff in the drug controller's office when he was the health Minister and his image was being tarnished.
Meanwhile deposing before the Lok Ayukta assistant drug controller H Srinivas stated that drug manufacturers made around Rs. 100 crore every year through overpricing drugs in collusion with the drugs controller. He claimed that the manufacturers used to bypass the directions of the National pharmaceutical pricing authority on drug prices by altering the formula package of the drugs for namesake and subsequently obtain permission from the state drug controller for selling them at higher rates.
He also alleged that though there were 165 drug manufacturing companies in the state, only 70 were actively involved in drug manufacturing.
The Lok Ayukta's raid on March 26, 2003 in the drugs controller department unearthed several irregularities due to which consumers had to pay in excess of over Rs 300 crore for the drugs they had purchased following drug companies fixing rates higher than the scheduled rates.