The report presented by the state vigilance directorate has confirmed the presence of flourishing fake medicine racket in Orissa. Report submitted in Orissa High Court yesterday confirmed a thriving racket in the supply of substandard drugs and transfusion fluids for government hospitals.

Report said that the corrupt officials of the state health department, responsible for purchase and storage of drugs valued at several crore, are suspected to be hand in glove with manufacturers.

Report said: “In most cases, spurious drugs circulation is carried out with the knowledge and connivance of officials of the drug controller, Orissa, and local drug inspectors who are on the payroll of unscrupulous dealers.”

The report added that the Utkal Chemists and Drugs Association, the apex body of retailers and wholesalers in the state, which had apparently turned into a power hub in controlling the trade and the industry through clandestine drug deals involving huge amount of money.