Karnataka Lokayukta has unearthed a major scam in purchase of drugs in government hospitals, causing huge losses to the state exchequer.

Lokayukta Santosh Hegde said they have already submitted a report to the government in this regard.

"Accordingly, we have made some suggestions under Karnataka Transparency in Public Procurements Act and also held certain officers responsible for their misdeeds. Now the ball is in the government court and they have to initiate action," he told PTI.

The report has indicted the purchasing authority for government hospitals for indulging in malpractices in drug purchases causing huge losses to the exchequer.

The report, based on one prepared by a committee of doctors entrusted with the probe by drug control department, states that the authority has been indulging in malpractices, causing huge losses to the government, Hegde said.

The Lokayukta entrusted the probe to this committee after complaints that some department officers in 2010-11 had placed orders worth Rs 50 crore. It found the charges true after preliminary examination and submitted an interim report to it.

Lokayukta then directed the Additional Director Karnataka State Drugs Logistics and Warehousing Society (KSDL & WS) not to procure the drugs. Subsequently they filed an application before the Lokayukta, explaining their stand.

The Lokayukta passed an order on June 5, 2010 stating that barring 25 drugs, other drugs could be purchased.

The probe pointed out there was a "conspiracy" to purchase drugs not permitted and also indicted some officers of KSDL & WS of being a part of it.