The Enforcement Directorate on Thursday filed a prosecution complaint under provisions of the Prevention of Money Laundering Act (PMLA) against the 17 accused persons in the Insurance Medical Services (IMS) scam.
The accused also include Dr. Devika Rani and Dr. K. Padma, the then director and joint director of IMS, respectively.
The ED began its investigation based on eight cases registered by Anti Corruption Bureau, Hyderabad. It was alleged that the accused persons, for procurement of medicines and medical equipment, deviated from the laid down procedure to benefit select vendors for illegal gratification.
EDs investigation later revealed that the officials hatched a conspiracy, deliberately created fake emergency situations and shortage of medical supplies so that they could issue purchase orders to select vendors through local purchase route.
Payments to suppliers were also deliberately withheld and released only after acceptance of bribes. Benami entities were created in connivance with Dr. Rani and the medicine/equipment was procured at very high prices. The IMS accused officials had used the bribe monies to purchase high-value jewellery and immovable properties.
In this case, the ED had already provisionally attached movable and immovable properties worth ₹143.15 crore in November 2021.
