The Kerala Government has decided to remove Dr.V.K.Rajan from the post of director of Health Services (DHS) for his role in various allegations of corruption related to the Health Department, mainly shifting purchase order of anti-rabies vaccine from Indian Immunological Lab (IIL) to Aventis Pharma, purchase of medicines and surgical sutures.

According to an order issued by the Kerala Health Minister Kadavoor Sivadasan, Dr.Rajan will take over as director of Virology Institute, Aalappuzha, and Dr.Mahilamani, additional director of Health Services, has been entrusted the additional charge of DHS.

Interestingly, about two months ago, the Home department under the Kerala Chief Minister A.K.Antony had recommended the then Health Minister P.Sankaran to initiate action against the official following a recommendation of the Vigilance Department which enquired into the Abhayrab vaccine issue. The minister was reluctant and had returned the files with clarifications. The home department released an order yesterday to remove the DHS from his post. Following the development, the Health Minister held discussions with the Chief Minister and decided to implement the order, said sources.

Two weeks ago, the Government had decided to call for fresh tenders to source anti-rabies vaccine for government hospitals and to cancel the controversial Abhayrab vaccine purchase order under the Central Purchase Committee (CPC) drug procurement scheme.

It is to be noted that Pharmabiz had earlier reported the Inspection Wing (F/Non-Technical) of the Finance Department of Kerala government had recommended suspension of the state Health Director for causing losses to the tune of over Rs.1 crore to the exchequer in hastily shifting purchase order of anti-rabies vaccine from IIL to Aventis Pharma.

Subsequently, the Assembly Estimates Committee, which also inquired into the deal, had recommended for a detailed probe by the vigilance department. The incident also pointed fingers at the alleged attempts of Aventis Pharma, market leader for anti-rabies vaccine in the country, to retrieve its Kerala government orders for Rabipur vaccine by pressuring and conspiring with the officials as alleged by a section of media.

In the case of CPC purchase related to Rs.7 crore worth surgical sutures, Dr.Rajan was alleged to have tried to place orders with three private companies ignoring Hindusthan Latex (which quoted for the least tender price), citing various reasons and violating the CPC norms. It was alleged that the deal involved corruption to the tune of over Rs.45 lakhs. Later the Government decided to cancel the order and to call for fresh tenders.

At least five vigilance enquiries were going on against Dr.Rajan for various allegations of corruption related to the health department and for amassing wealth disproportionate to his income, said sources.