ED files chargesheet in Rs 211 crore Insurance Medical Services fraud

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 chargesheet alleges that Dr Rani, in collusion with other IMS staff, violated all norms with supplier K Srihari Babu and also benami firms set up by the IMS chief and P Rajeshwar Reddy.

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.

Dr Rani and pharmacist Nagalaxmi allegedly conspired with PMJ Jewellers and purchased jewellery worth around `6.3 crore without bills using the scam money. The accused also invested in real estate. The scam mostly took place between 2015-16 and 2018-19. Several shell firms were floated to layer the money. The ED had attached villas, open plots, commercial shops and agricultural land parcels in Hyderabad, Bengaluru, and Noida.

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