The Kerala High Court directed the State Health Department to cancel the controversial Rs.100 crore odd drug and hospital products purchases made by the Central Purchase Committee (CPC) of the Department for supply to the Government run hospitals for 2004-05 period. Canceling the existing purchase deal, the HC has given two months time for the Government to invite fresh tenders.

The judgment was given by the single bench consisting of Justice K.Balakrishnan Nair on Wednesday while considering a writ petition filed by C. P. Padmakumar of Kollam. The writ was field for the intervention of the Court to cancel the orders citing widespread irregularities in the purchases.

The court felt that the medicines were procured in an 'illegal manner' contravening the provisions of the Store Purchase Manual to be followed by the Central Purchase Committee, which procures drugs on behalf of the health department.

The court directed the secretary, CPC and the Director of Health Services (DHS) to invite fresh tenders within the next two months and to cancel the existing orders. Further, the court said in case of shortage of medicines during the two-month period, the state health department could directly purchase the medicines on an emergency ground.

It may be noted that the former DHS, V.K.Rajan was transferred from his post a few months ago, following allegations on malpractices in the CPC purchases. Various cases and vigilance enquiries are going on to look into the matter.