Amid investigations and allegations of fiscal mismanagement, the Secretary of the Indian Medical Practitioners Co-Op Pharmacy and Stores Ltd (IMPCOPS), Dr V R Seshadri has been placed under suspension by the board of directors. The action came on the recommendations of the enquiry commission instituted by the present administration.

President of the 'Impcops' said strict action would be taken against the secretary because of the glaring acts of corruption on his part. "We are waiting the advice of the legal advisor. Further action will be initiated as per his advice", he said.

According to Dr Ramalingam, president of the Impcops, allegations of corruption ranging from Rs 4 to 5 crore are levelled against the previous administrative committee and the secretary was responsible for all the mismanagements occurred during his tenure. For the new hospital building, which is being constructed in the Impcops campus at Thiruvanmiyur, the contractor was given the agreement without following the rules and regulations of the society or the building rules. The former president of the Committee, a member of the state legislature assembly, was accused of granting work order to the contractor even without inviting tenders or calling quotations.

The estimated cost was Rs.52 lakhs and the whole amount was given away even before finishing the work. Dr.Ramalingam said the previous committee had given the contract three months after the contractor had started the work by accepting Rs.7 lakh as advance amount. The contract was given without specifying any time limit or other conditions and nothing contained in favour of the management.

On assuming power, the new committee has taken serious view of the irregularities found in various activities of the society and held Dr. Seshadri responsible for obfuscation of facts and embezzlement of funds on a large scale. The president of the doctors' run drug manufacturing firm told Pharmabiz that whenever the contractor wanted money, the secretary issued cheques without consulting the board members. The president said the secretary had apparently siphoned off funds meant for construction of building in collusion with the contractor. Now the new administrative committee has taken steps to finish the remaining work of the building.

The president has also accused the people of the sales depots for their negligence and mismanaging of accounts that had made big loss to the society. He said that a total sum of exceeding Rs.4 crore was allegedly swindled in the last few years. Some distributors were getting medicines worth lakhs of rupees without paying money to the depots by violating the rules of the institution.

The 64 year old organisation with 13500 members is registered under the Multi State Co-op Societies Act. With 300 staffers, Impcops have 17 sales depots covering Tamil Nadu, Andhra Pradesh, Karnataka, Pondicherry and Kerala and have a turnover of Rs.15 crore per year.

Impcops, the only drug maker under the co-operative sector in Asia manufacturing the three traditional Indian systems of medicines, is producing more than 700 varieties of Ayurvedic, Siddha and Unani medicines.

According to the president, the secretary was drawing Rs.40,000 month as salary and other benefits including quarters, vehicle with driver, telephone, mobile phone and other facilities.