IMS scam: ED attaches assets worth Rs 144 crore in money laundering case

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New Delhi: The Enforcement Directorate has attached assets worth Rs 144.4 crore belonging to the officials of Insurance Medical Scheme (IMS) and other accused in an alleged scam to the tune of Rs 211 crore.

The movable and immovable assets attached belonged to then Director of IMS, Dr Devika Rani, and other officials, their family members and suppliers of medicines.

The ED 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, valued at Rs 144.4 crore, acquired by the accused persons.

The agency claimed that the accused violated the tender process, misappropriated government funds and caused about Rs 211 crore loss to the state exchequer.

ED said it initiated money laundering investigation on the basis of eight FIRs registered by Telangana ACB, Hyderabad.

“The then Director IMS, Dr 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, P Rajeshwar Reddy etc. Medical items were purchased at grossly inflated prices,” said ED in a statement.

“Indents of dispensaries were fabricated and stock registers were fabricated to siphon off the medicines. Dr K Padma, Joint Director IMS, was found to be siphoning off medicines & supplies in the name of medical camps. Patented products were sold in a cyclical manner and ultimately purchased by IMS at 4-5 times their normal market rate. Dr Devika Rani, Pharmacist Nagalaxmi, and their families in order to layer and conceal the bribe money, entered into a conspiracy with M/s PMJ Jewellers and over a period of one year, regularly channeled their bribe money and purchased costly jewellery worth around Rs 6.28 Crore from Proceeds of Crime. Dr Devika Rani, Pharmacist Nagalaxmi, 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,” it added.

The agency further said that the “proceeds of crime have been well layered by showing excess profit or cash infusion in their personal Bank accounts or accounts of various shell firms”.