Bihar to blacklist three pharmaceutical companies

The Bihar government Friday decided to blacklist three pharmaceutical companies in the state after irregularities in the purchase of medicines worth crores of rupees were revealed, an official said.

"The decision was made after a report by the inquiry committee revealed lapses in the purchase of medicines worth Rs.60 crore," the health department official said.

Officials said the three companies are - Omega, Medipol and Laborate.

"It is a serious matter and action has to be taken against such companies. A formal notification would be issued in this connection soon," Bihar Health Minister Ramdhani Singh told IANS.

The Bihar Medical Services Infrastructure Corporation Limited (BMSICL) had purchased drugs worth Rs.19.60 crore from Medipol and Laborate, which are blacklisted in other states.

Omega was selected for purchase of drugs but it did not supply.

The BMSICL purchased drugs worth Rs.14.48 crore at a rate higher than what was fixed by the state health society, said the report by Additional Director of health department K.K. Singh.

The report also indicted BMSICL managing director Praveen Kisore and other senior officials.

"The government is likely to issue show cause notices to nine of them soon," an official said.

Bihar Chief Minister Jitan Ram Manjhi Thursday said that stern action would be taken against officials found guilty in the purchase of medicines for government hospitals.

For the last few days, opposition BJP leaders have raised the issue of irregularities in purchase of medicines that they claimed was a major drug scam.