HYDERABAD : The Enforcement Directorate (ED) has filed a prosecution complaint (chargesheet) in the Rs 211 crore Insurance Medical Services (IMS) fraud under the Prevention of Money Laundering Act (PMLA).
Charges have been filed against the then IMS director Dr Devika Rani and 15 other accused, including representatives of several drug firms and pharma company owners.
ED had already attached properties worth Rs 144 crore. The accused had allegedly resorted to financial irregularities in the supply of medicines and other surgical kits to dispensaries and Employee’s State Insurance (ESI) hospitals across Telangana.
ED’s PMLA case is based on eight FIRs registered by the Anti-Corruption Bureau (ACB) against the accused for violations in the tender process, misappropriation of public funds and causing loss to the state exchequer. Dr Devika Rani and others are alleged to have conspired with medicine and medical equipment suppliers and issued purchase orders in violation of norms.
The prices of medical items were inflated, and indents and stock registers were fabricated. Another key accused, Dr K Padma, who was joint director IMS, was found to be siphoning off medicines and supplies in the name of medical camps.
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