In the case of the Insurance Medical Services (IMS) scam, the Directorate of Enforcement (ED) has filed a Prosecution Complaint under the Prevention of Money Laundering Act, 2002 (PMLA) against 17 accused persons, including Dr Devika Rani, the then Director, Dr K. Padma, the then Joint Director, and others in the Hon’ble Metropolitan Sessions Judge cum Special Court (PMLA) Hyderabad. On October 26, 2023, the Hon’ble Court took cognizance of the Prosecution Complaint.
The ED launched an investigation based on eight FIRs filed by ACB, Hyderabad, Telangana, under various sections of the IPC, 1860, and the Prevention of Corruption Act, 1988, against Dr Devika Rani and others, alleging that Dr Devika Rani, along with other officials of IMS, deviated from the laid down principles for procurement of medicines and medical equipment to benefit select vendors for illegal gratification, causing a huge loss to the Government exchequer.
An ED investigation found that IMS officials and private individuals plotted a conspiracy and purposefully fabricated phoney emergency circumstances and shortages of medical supplies in order to issue purchasing Orders to certain suppliers via the local purchasing channel in return for unlawful gratification. Furthermore, payments to numerous vendors were purposefully delayed and delivered only when the bribe was accepted.
Benami entities were also set up in collusion with Dr. Devika Rani, and these were used to get drugs and equipment at exorbitant costs. The conspirators’ suppliers benefited from exponential development in their business, gained extraordinary profits, and paid bribes to IMS officials as a form of payment. The bribe money was utilized by IMS officials to acquire high-value jewellery and real estate.
Previously, the ED had attached moveable and immovable properties worth Rs. 143.15 crore in this matter. More research is being conducted.
