Clinical Drug trials Scandal of Government Hospital for Mental Care Worth about Rs 15 crores By Dr N N Raju and Dr G Bhagyarao Sub Clinical Drug trials Scandal of Government Hospital for Mental Care Worth about Rs 15 crores By Dr N N Raju and Dr G Bhagyarao I had visited to you on 19 SEP 2013 This is my reminder visit as there is no action so far This is to bring to your kind notice that Dr N N Raju and Gr G Bhagya Rao had worked together as hand in glove and conducted clinical drug trials for several CROs Contract Research Organizations at Government Hospital for Mental Care G H M C Visakhapatnam during the period 2001 to 2011 for financial gain 1 Dr N N Raju had resorted to forgery and financial embezzlement by signing tripartite agreements on behalf of the Superintendent G H M C Visakhapatnam with several CROs posing as if he is the authorized to do so 2 Dr N N Raju had diverted the money paid by the various CROs to the tune of 15 crores to a Benami bank accoumt operated by him in the name of Psychiatry Research Forum 3 He did these acts without informing the higher authorities Dr G Bhagyarao facilitated and helped Dr N N Raju for doing all these activities by allowing to do these contract clinical drug trials without proper record keeping at G H M C All these details were published by a Telugu daily news paper Vaartha on dt 26 06 2011 Following this the then District Collector instructed the Superintendent G H M C Visakhapatnam to stop all clinical drug trials immediately and the District Collector had instructed the Principal Andhra Medical College Visakhapatnam to conduct a detailed departmental enquiry of this issue The Principal Andhra Medical College AMC Visakhapatnam had constituted an enquiry committee and orderd to conduct a detailed enquiry The enquiry committee had completed its enquiry and submitted its report to the then Principal Dr G Santha Rao on 22nd May 2012 It is learnt that there is prima face evidence supporting the fraud committed by Dr N N Raju and Dr G Bhagyarao was found by the enquiry committee sufficient enough for taking disciplinary action against these people Now instead of taking action on these people the enquiry committee s report was kept in cold storage and no action was taken by either the principal or the district Collector or Director of Medical Education or the Principal Secretary Department of Health and Family Welfare Currently Dr N N Raju is working as Vice Principal AMC Visakhapatnam and by using his official position he is suppressing this reports and trying to get appointment as Superintendent of G H M C Visakhapatnam and Dr Bhagyarao who is retired from Government Service is trying to join as a Professor of Psychiatry on contract basis once Dr N N Raju takes over as Superintendent of G H M C Visakhapatnam If this happens again there is every chance of restarting the clinical drug trial scandal and hence this should be stopped and instead they must be suitably punished for their crimes In this connection I request your benovalent honour to 1 To bring the inquiry report in to lime light and facilitate further enquiry and action by CBI and punish the guilty 2 To stop Dr N N Raju from becoming the Superintendent G H M C Visakhapatnam 3 To stop Dr G Bhagyarao to join as professor of psychiatry on contract basis 4 As the matter is very Urgent and time bound an immediate and suitable action to be taken in this regard