New Delhi: The Enforcement Directorate (ED) on Tuesday Nov 23 said it has provisionally attached assets worth Rs 144.4 crore belonging to the then Director of Insurance Medical Services (IMS) Devika Rani, and other officials, their family members and suppliers of medicines, in the IMS scam of Telangana.
“The attached assets, under Prevention of Money Laundering Act (PMLA), 2002, are in the form of both movable and immovable assets,” the ED said.
The probe agency initiated money laundering investigation on the basis of 8 FIRs registered by Telangana ACB, Hyderabad, against the officials of IMS, Telangana, along with private persons including suppliers of medicines to IMS for violations in tendering process, misappropriation of government funds and causing loss to the state exchequer to the tune of more than Rs 211 crore.
“The then IMS Director in collusion with the IMS Joint Director Dr. K Padma, 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, P Rajeshwar Reddy etc.,” the financial probe agency said, adding that the medical items were purchased at grossly inflated prices.
Indents of dispensaries were fabricated and stock registers were fabricated to siphon off the medicines.
It said that the IMS Joint Director was found to be siphoning off medicines and supplies in the name of medical camps.
Patented products were sold in a cyclical manner and ultimately purchased by the IMS at 4-5 times their normal market rate.
The IMS Director, Pharmacist Nagalaxmi, and their families in order to layer and conceal the bribe money, entered 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 the crime.
As per the ED, the accused 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.
The proceeds of crime were well layered by showing excess profit or cash infusion in their personal Bank accounts or accounts of various shell firms.
The Enforcement Directorate said it has done fund trail investigation and till now identified and attached 131 immovable assets consisting of 97 plots, 6 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.
“Further investigation is under progress,” the probe agency added.