PG Medical Seat Scam: ED Issues Notice to Former Minister Malla Reddy
Hyderabad: While probing the allegations of illegal sale of postgraduate medical seats, the Enforcement Directorate (ED) has now issued notices to former Minister Malla Reddy.
Recently, the ED also questioned an administrative officer at Malla Reddy Institute of Medical Sciences, Surender Reddy, and recorded his statement as part of an ongoing investigation.
Medical Dialogues had earlier reported that investigating alleged seat-blocking fraud and irregularities in the financial transactions, ED officials had conducted raids on 12 medical colleges in Telangana.
Allegedly, some medical colleges, which are affiliated with Kaloji Narayana Rao University of Health Sciences (KNRUHS), sold the seats for higher prices by blocking them in a dubious manner last year.
The ED officials began simultaneous searches in the morning at multiple locations in Hyderabad, Karimnagar, Warangal, Mahabunagar and other places. Searches were on at Malla Reddy Medical College at Suraram on the outskirts of Hyderabad. The college is run by Malla Reddy group of institutions owned by Telangana labour minister Malla Reddy.
As per the latest media report by The Hans India, these 12 private medical colleges were linked to Minister Reddy and back then, ED had seized crucial documents, pen drives, hard disks, and other electronic evidence. Now, the Directorate has issued notices to the former Minister in connection with these alleged PG medical seat scam.
Hans India has reported that ED suspects that Minister Reddy, along with others, was involved in the illegal sale of PG medical seats and manipulation of seat allotments, potentially violating various norms. Reportedly, the raids were carried out in June following a tip-off and the authorities have claimed that significant evidence has been gathered to support these allegations. Malla Reddy served as Telangana Minister for Labour and Employment before his term ended.
Meanwhile, ED on Thursday questioned Surender Reddy, an administrative officer at Malla Reddy Institute of Medical Sciences. Reddy appeared after ED summoned him in connection to the probe regarding the alleged financial irregularities linked to former Minister Ch Malla Reddy's institute.
The investigation primarily focuses on potential irregularities related to PG medical admissions, including the alleged misuse of student credentials in a seat-blocking scheme.
The Times of India has reported that sources indicated that ED is examining records and testimonies to trace the flow of funds and to unearth further details. In June 2023, ED had seized Rs 1.4 crore in cash from Malla Reddy Institute and froze assets worth 3 crore as part of its investigation under the Prevention of Money Laundering Act (PMLA). So far, the investigation by ED has uncovered evidence, including documents and digital records and referred to cash transactions and collection of premiums from students.
Also Read: ED officials conduct searches on 12 medical colleges in Telangana
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