The case under Section 420 of IPC and sections 13(2) Prevention of Corruption Act read with Section 22 of HP Prevention of Corrupt Practices Act was registered with the anti-corruption zone Kullu in 1990.

The case related to supply of medicine kits by Panacea Drugs and Pharmaceuticals Limited, Nurpur, to the chief medical officer Kullu in 1989. A part of the consignment was allegedly found substandard. Ajay and Ravinder Mahajan were the partners in the supplier company.

The prosecution alleged that the accused conspired together to cheat the government by supplying substandard medicines to various hospitals. The prosecution, however, failed to prove the charge.

The case was registered by the anti-corruption zone following newspaper reports about the quality of the drugs supplied.

The evidence led by prosecution did not substantiate the allegations that some of the medicines in the kits were substandard, so it could not be said that the government was cheated, the judge held in his 25-page order.

Those acquitted of the charges included S.N.Sharma, retired assistant drug controller and Om Parkash, a high ranking officer in the Health Services who was posted at Dharamshala. The challan was put in court in February 1996.