Director General of Andhra Pradesh Drug Control Administration (APDCA) R P Thakur has recently submitted a report to the state government on gross irregularities in the functioning of Andhra Pradesh Pharmacy Council (APPC) under the earlier president and the then registrar of the council.

In the face of several allegations against APPC’s former president Vijayabhaskar Reddy and former registrar MVV Satyanarayana, the state government had ordered an inquiry by AP DCA director general, who is also in-charge of AP Pharmacy Council, in February 2012. He submitted his report to the principal secretary, health, medical and family welfare department, a week ago. The irregularities which came to light include collection of excess registration and renewal fee to the tune of Rs.1.10 crore from pharmacy graduates and misappropriation of council funds.

“Our inquiry has revealed that former APPC registrar Satyanarayana in connivance with Vijayabhaskar Reddy had collected excess amount, both for registration and renewal, from each candidate against the fee prescribed by the government,” said RP Thakur.

The inquiry also recommended that a cheating case and other cases be booked against the duo and investigation be handed over to the Crime Investigation Department or Central Crime Station.

Sources said the council had collected Rs.84.91 lakh excess fee between May 2011 and February 2012 for registration from 1,786 candidates and another Rs.27.05 lakh from 2,803 members towards renewal of membership between February 2011 and December 2011. The sources said unofficial amounts up to Rs.30,000 were collected from about 100 candidates for renewal and for issuing 'Good Standing Certificates', which are mandatory for practising and employment in foreign countries.

An investigation official said, "We suspect an amount of Rs.44 lakh was misused by the duo, especially the former president, by withdrawing from bank accounts of the council. An audit is being conducted to arrive at the exact amount.”

Interestingly, membership is renewed every year without any fee. However, the investigators found the receipts showing membership was renewed for periods ranging between one and five years.

As per the Pharmacy Act, 1948, and the AP Pharmacy Council Rules, 1955, membership fee for registrations should be Rs.510 for diploma holders (D Pharmacy) and Rs.560 for graduates (B Pharmacy) and there is no special fee for renewal. However, Vijayabhaskar Reddy, whose nomination as president was quashed by the high court, in connivance with the registrar, enhanced the fee without taking permission from the state government. For 'Good Standing Certificate,' the original fee is only Rs.500, but the council collected Rs.6,500 from each candidate.

Almost 90 per cent of pharmacy graduates and diploma holders register with the APPC as registration helps them to work as pharmacist or start their own businesses.

The inquiry report also pointed out that Satyanarayana, who had retired as deputy secretary in the health, medical and family welfare department, declared Vijayabhaskar Reddy as president of the council though there was a high court stay on the election in March 2011. The former registrar sent a letter announcing the election of Vijayabhaskar Reddy to the SBI Nampally branch to operate the bank account illegally, the report said. The high court upheld removal of Vijayabhaskar Reddy as president of APPC by the state government in March 2012, who continued for nearly a year.