1. Huge sums of money from 11th five-year plan projects are diverted. Following projects not started till date (at the end of 11th five year plan).
a. Intellectual Property Rights (Scheme N17), Project Outlay Rs.2.25 crores,
b. New specialization in R&D Management (Scheme N14), project Outlay Rs.1.60 crores,
c. Clinical Research Training (Scheme N16), project Outlay Rs.3.00 crores,
d. Research in Pharm Vigilance & Pharmaco economies (Scheme N15), Project outlay approx Rs.2.50 crores.
2. Diversions of 11th five year plan money to construction projects. Money received for Drugs for most neglected diseases (Scheme N18) was diverted to construct swimming pool.
3. Parasitology Laboratory (Scheme C05) and Herbal Preservation Setup (scheme N12) has not started at the end of five year plan period.
4. 1500 seated Auditorium (Scheme N05) is not build but the money is kept in bank as FD.
5. International level laboratory is built (Scheme C03) and rented e.g. renting laboratory to Systems Biology Worldwide in nominal rent (cost of lab is 1 crore and rented 20 lacs per annum out of which 10 lacs taken as advisory consultancy).
6. Building like, Swimming pool (Scheme N02), Community center (Scheme N04), Extension of Bio-availability center (Scheme N06) etc. was done by putting huge expenditure in construction but never used causing lose of money to exchequer.
7. Cost escalation is a routine feature. Technology development Center (formulation) from 60 lakhs to 11 crore. (Originally it was proposed to be a Schedule H compliance demo plant. Now it is being built to rent to again a specific company.)
8. In the financial year 2010-11 Department of Pharmaceutical released Plan money of Five year plan as per NIPER demand. Officiating director distributed money less then what is released. Actual money released from ministry for planned schemes and actual disbursement has a huge difference, moreover the actual expenditure from compass is not also submitted to finance committee.
9. Purchase of diesel worth crores of rupees without following purchase procedure, since the inception of the institute till 2010. After establishing procedure in middle 2010 institute saved 1 crore in diesel and spare parts .
10. Distribution of salary and PF of contractual staff without following Govt. norms.
11. Leasing of technology development center repeatedly to one particular company in substantially low rent.
12. Distribution of consultancy project money without following the consultancy rules.
13. Equipment thefts from the institute are not reported to police and purchases are being made to get replacement.
14. NIPER officiating Director recruited wife of one of the CAG employee to keep the entire misdeed under cover despite of her rejection by selection committee.