Hyderabad: The enforcement board conducted investigations at seven locations in the city on Saturday in connection with the money laundering investigation into large-scale scam in the Insurance Insurance Services (IMS) division of the State Insurance (ESI) department.
An official press release from the board seized large amounts of incriminating evidence, huge amounts of cash, non-cash cash worth Rs.3 million, jewelery worth Rs.1 crore.
Money laundering was investigated against the then IMS director, Dr Ch Devika Rani, her husband, Srihari Babu alias Babji of the Omni Group company and several others, based on eight FIRs registered by the Anti-Corruption Bureau (ACB) on the allegations of financial irregularities. in the purchase and supply of medicines and surgical kits at an increased price, and gross deviations from ESIC and government norms, except for the creation of false intrusions and bills, diversion of medicines, falsified records, etc.
The scam made the proceeds of crime (POC) about Rs. 100 crore to Rs. 200 crore, the release said.
The ED searches began this morning at the residential area of Devika Rani, Srihari Babu and V Srinivas Reddy.
Searches were also conducted at the residential premises of Mukunda Reddy, M Vinay Reddy, who is brother-in-law of Mukunda Reddy, Burra Pramod Reddy and at the business premises of Omni Medi.
During searches, cash of approximately Rs1.50 crore, Rs1.15 crore and Rs.45 lakh was seized from the residential premises of Srinivas Reddy, Pramod Reddy and Vinay Reddy respectively.
Apart from cash, documents and digital evidence are seized. The latest reports are still being searched.
The ACB discovered the scam in 2019 and arrested more than 25 people, including Devika Rani and some representatives of pharmaceutical companies.
Source: Telangana Today