Dr Sherpa is accused of procuring Misoprostol 200MCG, a drug used for patients to control haemorrhage during delivery, in high rate and replenishing the stock without its need. The CIAA has also arrested the then director of Logistics Management Division (LMD) Dr Naresh Pratap KC, senior official Krishna Bahadur Chand, officer at store Pawan Prasad Koirala and Ram Sundar Yadav and health inspector Him Lal Gyawali

for their involvement in the drug purchase.

Issuing a statement on Friday, the anti-graft body said that despite reports that the drugs were substandard, the department kept on supplying the drugs to various remote areas of the country.

Although the Department of Drug Administration (DDA) had recalled the substandard drug, the government had continued to make the supply. The DDA had found that the drug weighed much less than the set standard of 200 micrograms. A source at DDA said since the drugs weighed low, it does not work effectively to the targeted patients.

The drug was being supplied by Laborate Pharmaceuticals, India, and the procurement was done for the supply since 2011 to 2013.

The Ministry of Health and Population provides the drugs for free in 42 districts of the country through health institutions and female community health volunteers. The drug was piloted in Banke district in 2005 till 2009. Doctors at Family Health Division of the department claimed that the drug helped save the lives of many mothers in rural areas CIAA has also suspended incumbent Director General Dr Lakhan Lal Shah and Director of LMD Dr Taranath Pokhrel.