ED attaches Rs 144.4 crore assets in Telangana Insurance Medical Services scam
Joint Director IMS, was found to be siphoning off medicines and supplies in the name of medical camps, ED said. In its probe, the agency found out that the patented products were sold in a cyclical manner and ultimately purchased by IMS at 4 , 5 times their normal market rate.
New Delhi: The Enforcement Directorate (ED) on Tuesday attached assets worth Rs 144.4 crore in connection with Telangana Insurance Medical Scheme (IMS) scam.
The properties belong to the then Director of IMS and other IMS officials, their family members and suppliers of medicines.
The attached assets are in the form of both movable and immovable assets. The agency attached these assets under the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated a money-laundering investigation on the basis of eight FIRs registered by Telangana Anti Corruption Branch, Hyderabad, against the officials of IMS, Telangana, along with private persons including suppliers of medicines to IMS for 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.
"The then Director IMS, Devika Rani, in collusion with the Joint Director IMS, and other staff of IMS have blatantly violated all norms of the government orders 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 and P Rajeshwar Reddy," the ED statement said.
Medical items were purchased at grossly inflated prices, said the agency, adding "indents of dispensaries were fabricated and stock registers were fabricated to siphon off the medicines".
K Padma, Joint Director IMS, was found to be siphoning off medicines and supplies in the name of medical camps, the agency said. In its probe, the agency found out that the patented products were sold in a cyclical manner and ultimately purchased by IMS at 4-5 times their normal market rate.
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 one year, regularly channelled their bribe money and purchased costly jewellery worth around Rs 6.28 crore from proceeds of crime, the ED investigation revealed.
Devika Rani and their families 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.
These proceeds of crime have been well layered by showing an excess profit or cash infusion in their personal Bank accounts or accounts of various shell firms, said the ED.
ED said it has done fund trail investigation and till now identified and attached 131 immovable assets consisting of 97 plots, six Villas, 18 commercial shops, 6 agricultural lands and 4 flats in and around Hyderabad, Telangana, Andhra Pradesh, Bangalore and Noida; and movable assets in the form of securities and fixed deposits; total valued at Rs. 144.4 crore, acquired by these accused persons.