ED Seizes Assets In The IMS Fraud Worth Rs 144 Cr Under PMLA

New Delhi : , Tuesday, November 23rd, 2009 – The Enforcement Directorate (ED), on Tuesday, said that it had provisionally taken Assets in excess of Rs 144.4 crore from Devika Rani (the former Director of Insurance Medical Services) and several other officials as well as their families and providers of medicine, all part of the IMS Fraud of Telangana.
According to the ED, “The attached Assets are, in accordance with Prevention of Money Laundering Act 2002 (Pmla), they take the form of both movable as well as immovable Assets.”

 Ed Seizes Assets In The Ims Fraud Worth Rs 144 Cr Under Pmla-TeluguStop.com

Based on 8 FIRs filed by Telangana ACB Hyderabad against officials from IMS, Telangana and private individuals including IMS suppliers, the probe agency launched a money laundering investigation.These were for violations in the tendering process, misappropriation government funds, and loss to state exchequer of over Rs.211 crore.

The financial probe agency stated that “The former IMS Director, in collusion and the IMS Joint Direct Dr.K Padma and other IMS staff have blatantly violated every norm of the government orders, and issued purchase orders mostly to firms belonging to Supplier K Srihari Babu as well as benami companies set up by Dr.Devika Reddy, P Rajeshwar Reddy, etc.” and added that medical products were bought at outrageously high prices.

To siphon the drugs, dispensaries had to be indented and stock registers created.

According to the report, the IMS Joint Direct was accused of siphoning medicines and supplies under the guise of medical camps.

The IMS purchased patented products at about 4-5 times the normal market price and sold them in a cyclical fashion.

In order to conceal and layer the bribes, the IMS Director, Pharmacycist Nagalaxmi and their families entered into a conspiracy together with PMJ Jewellers.Over a one-year period, they channelled their money regularly and bought expensive jewellery valued at around Rs 6.28 Crore from the proceeds of crime.

According to the ED, they also made large cash advances in order to buy prime real property.

Regularly, cash was also transferred to their bank accounts.

Once layered, the cash was used for immovable property purchases.

By showing excessive profit or cash infusions in their bank accounts, or those of different shell companies, the proceeds of crime was well-layered.

According to the Enforcement Directorate, it had conducted a fund trail investigation.It has attached 131 immovable items, including 97 plots and 6 villas and 6 commercial shops and 6 flats around Hyderabad, Telangana and Andhra Pradesh; as well as movable Assets such fixed deposits and securities.The total value of these Assets was Rs 144.4 crore.

The probe agency said that further investigation was in progress.

#Seizes #Assets #Fraud #Worth #Pmla #Telangana #AndhraPradesh #Hyderabad #Delhi


#Seizes #Fraud #Delhi #Andhrapradesh #PMLA