The Kerala government has launched a departmental inquiry into alleged massive financial misconduct at Oushadhi, the state-run pharmaceutical firm. Health Minister K. Muraleedharan has also called for a Vigilance probe.
Key Takeaways
- Allegations of irregularities in construction contracts, procurement, and accounting at Oushadhi.
- Health Minister K. Muraleedharan ordered a departmental inquiry via the Finance Inspection Wing.
- A request has been made to the Vigilance and Anti-Corruption Bureau (VACB) for a preliminary probe.
- Claims include manipulation of sales figures and bypassing open tender procedures.
The Kerala government has initiated a formal departmental inquiry into alleged widespread financial irregularities at Oushadhi, the state-run pharmaceutical company operating under the Department of AYUSH. Adding weight to the matter, Health Minister K. Muraleedharan has also formally requested a Vigilance probe into the allegations.
The move follows a detailed complaint filed by P.B. Satheesh, director of the human rights organization Nerkazhcha. The complaint outlines systemic failures in construction contracts, procurement processes, financial management, and accounting practices within the public sector undertaking (PSU).
Why This Matters
BozokMedia analysis shows that allegations of this magnitude in a state-owned entity can severely undermine public trust in government-run healthcare institutions. If the claims regarding inflated sales figures and bypassed tenders are substantiated, it could indicate a significant breakdown in institutional oversight and financial propriety.
Ensuring transparency in state-owned pharmaceutical enterprises is critical to maintaining both fiscal integrity and public confidence in traditional medicine.
The complaint specifically alleges that several major construction projects, including the renovation of manufacturing plants and warehouses, were awarded to the Uralungal Labour Contract Co-operative Society (ULCCS) without following prescribed open tender norms. Furthermore, it is alleged that Oushadhi manipulated its 2024-25 sales records by creating fictitious inventory entries to artificially inflate revenue figures.
Comparison: Allegations vs. Official Defense
| Issue | Allegations in Complaint | Management Response |
|---|---|---|
| Tender Process | Contracts awarded without open tenders or negotiations. | All works followed due procedure with Finance Dept approval. |
| Sales Records | Fictitious inventory used to show ₹46cr sales in March 2025. | MD denies knowledge of any financial irregularities. |
| Outstanding Dues | ₹5.52 crore remains unrecovered from dealers. | Management claims no communication of such inquiries received. |
In response, Oushadhi Managing Director P.M. Lathakumari has denied any knowledge of the alleged irregularities, stating that the management has not received any official communication regarding such an inquiry. Similarly, sources from ULCCS maintained that all projects were completed following proper protocols and that any delays were due to the necessity of working within a functional plant.
Historical Background
Oushadhi is a cornerstone of Kerala's AYUSH sector, responsible for the production of authentic Ayurvedic medicines. As a state-owned entity, it is subject to strict government audits, making these allegations particularly sensitive for the state administration.
Frequently Asked Questions
1. What are the specific charges against Oushadhi?
The charges include bypassing tender norms for construction, manipulating sales data, and improper credit facilities for dealers.
2. Who is conducting the investigation?
A departmental inquiry is being handled by the Finance Inspection Wing, with a secondary request for a VACB investigation.
