Hyderabad: Director of Insurance Medical Services (IMS) Ch Devika Rani, its joint director K Padma and five others have been arrested in the alleged multi-crore scam in the supply of medicines to dispensaries and ESI hospitals, Telangana Anti-Corruption Bureau (ACB) said on Friday.

The state government's vigilance and enforcement (V&E) wing had earlier conducted an enquiry into the allegations that no proper eligibility criteria were followed by the IMS director in the selection of firms for supply of medicines.

The wing, which filed a report in March this year, found out that the medicines were bought at exorbitant prices allegedly in violation of the procurement procedures and the e-tender processes.

The probe was conducted into the contracts given to firms for supply of drugs to dispensaries and the ESI (Employees State Insurance) hospitals in 2016-18.

The wing had recommended initiating disciplinary action against the errant officials.

Cases under relevant sections of cheating and corruption were booked against the official, the ACB release said.

The accused officers were being produced before the ACB Court for judicial custody, it said.

The case is under investigation, it added.

On Thursday, anti-corruption bureau conducted simultaneous searches in the offices and residences of officials of the IMS and that of others as part of its probe into alleged scam.

Listing the alleged irregularities, the ACB had said two fake indents for medicines worth Rs 1.03 crore were prepared by the joint director in May last year and the bills were passed by the director.

Similarly, medicines worth Rs 1.23 crore were indented and received by the Joint Director but the stock was not sent to the dispensaries, it said.

Another allegation was that the director and other officials caused a loss of Rs 9.43 crore to the government in purchase of medicines through 2017-18. PTI

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