The Kerala government has decided not to issue drug licences to the Kerala Chemists and Distributors Alliance (KCDA), a company floated by All Kerala Chemists and Druggists Association (AKCDA) for trading branded generics and specialty anti-cancer and anti-retroviral medicines, till the AKCDA is cleared of its corruption charges.

The Kerala government's decision is based on the fact that the top AKCDA office-bearers are facing corruption charges for amassing wealth by mis-using their postitions in AKCDA. As per the government decision taken at a meeting chaired by state health minister PK Sreemati, drug license will be issued to the KCDA only after the AKCDA office-bearers are cleared of their corruption charges.

The government has constituted a committee to look into the corruption charges against some of the AKCDA office-bearers who are in the forefront of forming the KCDA. Apart from charges of corruption, the state government is also investigating the role of these office-bearers in discontinuing distribution of medicines to Neeti stores and Maveli stores, two semi-government bodies that provides essential items including medicines to the common man at fair prices.

As per schedule, the KCDA, which was formed as part of the All India Organisation of Chemists and Druggists plans for corporatisation, was to come into operation from April 2008. The KCDA has plans to invest Rs 25 crore for which shares have been collected from its members at Rs 10 per share. The company is aiming to purchase drugs at one point for the shareholders and to distribute the products to the members as per the requirements.

In the initial stage, the company was planning to cover the generics and anti-cancer and anti-retroviral medicines market in the state through 450 existing stockists and dealers. The company will also provide drugs to the hospitals and doctors through the system.