THIRUVANANTHAPURAM: In the wake of allegations of major financial irregularities, Health Minister K Muraleedharan has initiated action against officials of Oushadhi, the state-owned ayurvedic medicine manufacturing unit. The minister has ordered a detailed probe by the health secretary, and also sought a Vigilance investigation into the matter.
The move comes after Thrissur-based Nerkazhcha Association alleged serious irregularities in the procurement, execution of works, maintenance of accounts, and other connected financial transactions at Oushadhi under the Department of Ayush. The association, in its petition, has alleged revenue manipulation during the financial year 2024-25 and a lack of transparency in the bidding process.
“The finance inspection wing shall examine whether the applicable financial rules, tender procedures, and accounting practices have been duly complied with and submit a comprehensive report with findings and recommendations for further action, if warranted, at the earliest,” stated the order issued by the minister. He has also written a letter to Home Minister Ramesh Chennithala seeking a vigilance probe into the allegations.
In the petition, P B Satheesh, the director of the association, alleged attempts to manipulate revenue during the financial year 2024-25. “While other units recorded an increase in sales, the dealer sales of Oushadhi declined from Rs 21 crore in 2021-22 to Rs 15 crore in 2025-26 instead of increasing to the projected Rs 30 crore.
Distributor sales have come down from Rs 1.73 crore in 2021-22 to Rs 1.45 crore in 2025-26. Oushadhi had recorded an increased sale of 6.13% in 2023-24 worth Rs 185 crore compared to the previous year. However, the dealer and distributor sales have decreased in the year,” he said, alleging that there were attempts to create artificial sales figures in March 2024-25.
The petition has also questioned the award of two construction works to Uralungal Labour Contract Co-operative Society (ULCCS) over the other bid participants. “In its bid for the effluent treatment plant contract, ULCCS quoted a 2.45% charge, while the Thrissur District Labour Co-operative Society Ltd quoted a lower charge of 1.75%. The parties participating in the bid were not called for an interview, leading to a lack of transparency in the process,” said the petition.
Major allegations
Discrepancies in both dealer and distributor sales
Revenue manipulation during the financial year 2024-25
Ambiguity surrounding contracts for two construction works to Uralungal Society
