ED attaches Rs 144 crore in Telangana Medical Insurance scam

HYDERABAD: Enforcement Directorate has provisionally attached assets worth Rs 144 crore in the Insurance Medical Scheme scam accused in Telangana under the Prevention of Money Laundering Act.

The properties of the Director of IMS and other IMS officials, their family members and suppliers of medicines in the Insurance Medical Scheme were attached.

ED has initiated a money-laundering probe based on eight FIRs registered by the Telangana Anti Corruption Bureau against the accused of violations in the tendering process, misappropriation of Government funds and causing loss to the State exchequer to the tune of more than Rs 211 crore.

ACB alleged that the accused conspired with the local suppliers of medicines and medical equipment and issued Purchase Orders to select suppliers by deviating from the norms.

The norms were issued in 2012 by the Government to streamline the procurement process to prevent leakage of funds.

It is alleged that the the then Director IMS,

Dr Devika Rani

, in collusion with the Joint Director IMS, and other staff of IMS have blatantly violated all norms of the GO and all prudent office procedures, and issued Purchase Orders to firms mostly belonging to Supplier K

Srihari Babu

and also benami firms set up by Dr

Devika Rani

, P Rajeshwar Reddy.

"Medical items were purchased at grossly inflated prices. Indents of dispensaries were fabricated and stock registers were fabricated to siphon off the medicines.

Dr K Padma

, Joint Director IMS, was found to be siphoning off medicines & supplies in the name of medical camps. Patented products were sold in a cyclical manner and ultimately purchased by IMS at 4-5 times their normal market rate. Dr Devika Rani, Pharmacist

Nagalaxmi

, and their families in order to layer and conceal the bribe money entered into a conspiracy with PMJ Jewellers and over a period of an year regularly channel their bribe money and purchased costly jewellery worth around Rs 6.28 Crore without proper bills" alleged ED.

The accused also gave large cash advances to purchase prime real estate. Cash was also deposited in their Bank accounts at regular intervals and once layered, the same was used to buy immovable properties.

"Money laundering investigation has revealed that officials of IMS, Telangana, select suppliers have pocketed huge amounts of bribes and profits running into more than Rs 200 Crore in the period from 2015-16 to 2018-19. These proceeds of crime have been well layered by showing excess profit or cash infusion in their personal Bank accounts or accounts of various shell firms" said ED. ACB had arrested the accused persons and all of them are on bail now.

ED has identified 131 immovable assets consisting of 97 number of open plots, 6 Villas, 18 commercial shops, 6 agricultural lands, 4 flats in and around Hyderabad, Telangana, Andhra Pradesh, Bangalore and Noida. ED has also identified large volume of movable assets in the form of securities and fixed deposits acquired by these accused persons.

ED has provisionally attached assets worth Rs17 crore from Dr Devika Rani, Rs 2. 4 crore from K Nagalaxmi, Rs 74 lakh from Dr

Padma

, Rs 119 crore from Mr K Srihari Babu of Omni Group, Rs 4 crore from Pandiri Rajeshwar Reddy - all totaling toRs 144 crore.