The functioning of both Pharmexcil and Chemexcil, the two export promotion councils representing pharmaceutical sector, has been flayed by two Rajya Sabha members. The MPs, in separate complaints to Kamal Nath, union minister of commerce, have sought high-level investigations into the activities of the councils.

While Karnendu Bhattacharjee wanted the government to explain the rationale behind the existence of two councils for the same sector, Abani Roy called for a high level investigation into the motive of the former government to sanction Pharmexcil without proper scrutiny. In a separate letter, the latter accused Chemexcil to be functioning in a non-democratic manner and stated that there was no authenticated and updated list of electoral members and lists are manipulated.

Roy states that his attention had been drawn to "the vague bye-laws, which govern the working of Chemexcil, giving room to formation of vested interest and control, detrimental to the industry." He accuses, "The provision of meeting and functioning of committee of administration, panels and sub-committees are at the whims and fancies of the chairman." and alleges that the "provisions of bye-laws have been misinterpreted in order not to have elections of chairman and vice chairman, in spite of their elected terms having lapsed."

In the case of Pharmexcil, the MP has questioned the very existence of the council. "I would like to draw your attention towards the political motive of the erstwhile NDA Government in collusion with vested bureaucrats of your ministry, who had rushed to notify the formation of Pharmexcil on the eve of election results to Lok Sahba in 2004," Roy alleges. He wanted all activities of Pharmexcil to be kept in abeyance until high-level investigations are carried out covering all the points.

Reacting to the observations in the letter, D B Modi, chairman, Pharmexcil said that the council was formed in a thoroughly legal manner. "The decision to form a separate council for pharmaceuticals was taken long back and had the concurrence of all the ministries. The irregularities in the functioning of Chemexcil were one of the major reasons for the government decision. At the time of approval, there was a CBI inquiry into the activities of a former chairman of Chemexcil. All four pharmaceutical industry associations, Indian Drugs Manufacturers Association (IDMA), Bulk Drugs Manufacturers Association (BDMA), Organisation of Pharmaceutical Producers of India (OPPI) and Indian Pharmaceutical Alliance (IPA) had demanded for formation of a separate council for pharmaceuticals. If the government feels that there is no need for a council now, they can decide to wind up the operations of the new council," he said.

Satish Wagh, the chairman of Chemexcil, also dismissed the allegations as baseless. He said that it was not the first time that complaints were raised against him. "A group of Chemexcil members who are not happy with me have been trying to complain against me for long time now. About 40 of them had even written to the President and Prime Minister against me. But the entire issue of chairman's term was considered by the ministry and a legal opinion was given that the chairman's tenure is for two years and could continue even if his elected term has expired," he explained.

Meanwhile, the office of the union commerce minister has acknowledged the receipt of the complaints and has assured the MPs that the matter would be looked into at the earliest.