ED raids 7 locations in Telangana's Hyderabad in IMS scam

New Delhi: The Enforcement Directorate (ED) on Saturday raided seven locations in Hyderabad and recovered Rs 3 crore in cash, jewelery and property documents. The ED raids were conducted in a money laundering case related into Telangana IMS (Insurance Medical Services) ESI Department. The raids started early Saturday morning and continued till late in the night.

The case is related to allegations of financial irregularities in the purchase and supply of medicines and surgical kits, huge price escalation, creation of fake indents, fake bills, diversion of medicines and falsification of records.

It is alleged that a scam was generated proceeds of crime (POC) approximately of around Rs 200 crores in the purchase of medicines and surgical kits. As many as eight cases were registered by the Anti-Corruption Branch in Telangana, after which the ED registered a case of money laundering.

The ED conducted the raids on the son-in-law of former Telangana Labor and Employment Minister Nayani Narasimha Reddy, V Srinivas Reddy, relative M Vinay Reddy, former minister's personal secretary Mukunda Reddy and IMS directors Dr Devika Rani and her husband Srihari Babu and Burra Pramod Reddy.

In the raid, the ED seized Rs 1.50 crore from V Srinivas Reddy's house, Rs 1.15 crore from Burra Pramod Reddy and Rs 45 lakh cash from M Vinay Reddy.

The ED also recovered several incriminating evidence documents and digital evidence.