Documents accessed by The Indian Express after the fire disaster at AMRI show that apart from fire safety norms,the hospital had violated the Clinical Establishment Act as well. Apparently,AMRI was running a blood bank without any valid licence for 18 months.
Documents available with The Indian Express indicate that when the hospital started functioning in 1996 in the name of Advanced Medicare Research Institute Limited,it had a valid licence to operate a blood bank for collection,storage and processing of human blood.
On February 16,2009,the hospital authorities changed its name to M/s Susrut Clinic and Research Institute for Advanced Medicine,but never bothered to inform the drug control department,which is a mandatory process. M/S Advanced Medicare and Research Limited transferred all properties and rights to M/s Susrut Clinic and Research Institute for Advanced Medicine,internally. The issuing of licence to blood bank rule 122G of the Drugs and Cosmetics Act 1940 states that the licencee shall inform the licencing authority and or central licence approving authority in writing in the event of any change in the constitution of the firm operating under the licence.
If any change in the constitution of the form takes place,the current licence shall be deemed to be valid for maximum of three months from the date of change,unless in the meantime,a fresh licence has been obtained from the authority in the name of the firm with the change of constitution.
The AMRI authorities never informed the change of name of the hospital to the drug control department,resulting to the invalidation of their licence. In the meantime,on July 1,2009,the authorities again changed the name from M/s Susrut Clinic and Research Institute for Advanced Medicine to M/s AMRI Hospitals Limited.
While changing the firms name for the second time,it suddenly dawned upon the hospital owners to apply to the drug control department for grant of a fresh licence to run the blood bank. The department refused to renew the application.