Headed by one Sakhi Murad, the gang reportedly included some sanitary inspectors and supervisors of three state-run hospitals in the provincial metropolis.
The accused and his four partners were arrested, while some hospital employees who were present at the waste recycling point located in Kashmir Street behind the General Hospital managed to escape, EPD officials said.
A case has been got registered against the accused under sections 268, 269, 270, 274, 278 and 284 of the PPC dealing with spread of infectious diseases, adulteration of drugs and negligence with regard to handling of poisonous substance. The accused can be awarded a maximum of two-year jail term under these sections if proven guilty.
It is first such case since the issuance of the Hospital Waste Management Rules 2005 by the provincial authorities.
The rules say hospital waste cannot be sent out of a medical facility and it has to be disposed of properly as per procedure there and then.
District Environment Officer Tariq Zaman said the ugly business was detected during a survey of hospital waste disposal and the possible leakages in the process.
On a tip-off, a team raided a godown in Kashmir Street and seized three truckloads of the waste from there. The waste was transported to Mahmood Booti dumping facility of the city district government for its proper disposal.
According to Kot Lakhpat police, during preliminary investigation the accused named some sanitary inspectors and supervisors of General, Children and Jinnah hospitals who were conniving with him in the collection of medical waste, which was later re-packed and sold out at various drug stores.
Mr Zaman said there were already complaints against waste management committees, compulsory under the 2005 rules, of these hospitals.
According to him, District Coordination Officer Muhammad Ijaz would be immediately writing to the medical superintendents of these hospitals to invite their attention to the horrendous business going on under their very nose that might cause spread of infectious and vector diseases like hepatitis B, C, and HIV/AIDS at a large scale.
The officers would be advised to plug the loopholes in the waste management plans of their respective facilities.