The acting drug controller of Karnataka Drugs control department, H Jayaram submitted his resignation on Thursday. The decision will now rest with the Lok Ayukta to decide who should take on as the acting drug controller.

The Rs.300 crore drug scam is expected to bring out many more names into light with the interrogation that is being conducted by the Lok Ayukta, the investigation agency of the government of Karnataka, sources from the government said here.

One of the suspended assistant drug inspectors H Srinivas who was a key witness to the cuts and bribes in the drugs department alleged that R Anand Rajashekar had demanded Rs.2.2 lakh for a transfer from Tumkur to Bangalore. He had paid Rs. 1.8 lakh in three instalments of Rs. 60 lakh each. During his tenure at the drugs department in Tumkur, he said he was exposed to the production of spurious drugs and had informed drugs controller Anand Rajashekar but no action was taken.

After that he had written a letter to the secretary, health and family welfare, government of Karnataka to conduct a serious investigation on the 137 pharma companies and distributors in the State, which were overcharging the drugs in violation of the Drug Price Control Order. A request for a CBI or a CoD inquiry was made to the State health department. Further, he had also alerted the health and family welfare department that the officials were not cooperating. In the meanwhile, he had complained to the Director General of Police and Inspector General of Police following the threat calls he received when he had informed the irregularities and misappropriations that were going on in the drugs control department to the higher authorities.

The assistant drugs control also said that he was summoned by the former health minister and present medical education minister Dr. AB Malakaraddy through a chemist based in Gulbarga soon after the raid conducted on March 26. Dr. Malakaraddy wanted to know whether he had mentioned the name of the minister to the Lok Ayukta's Justice N Venkatachala.

Deposing before the Lok Ayukta, Srinivas said that he should be given more time for providing evidences and the hearing has been posted for April 16, by Justice N Venkatachala. Deposition of the other witness has been posted to April 21.