IMS scam: ED seizes Rs 3 crore from accused

HYDERABAD: In a major development pertaining to the Insurance Medical Services (IMS) scam unearthed in Telangana in 2019, the Enforcement Directorate (ED) seized unaccounted cash of Rs 1.5 crore from the residence of V Srinivas Reddy, son-in-law of former Home and Labour Minister of Telangana, late Nayini Narsimha Reddy. 

The ED also seized Rs 45 lakh from M Vinay Reddy, the brother-in-law of Mukunda Reddy, who used to be the personal secretary of Nayini, and Rs 1.15 crore from Burra Pramod Reddy, a businessman.  It was found that the scam, which was pulled off by the Director of IMS Devika Rani and other officials in the ESI (Employees State Insurance) Department, has generated proceeds of crime valued up to Rs 200 crore, the ED said.

Previous investigations unravelled how Devika Rani floated benami firms and claimed bills for Rs 200 crore without actually supplying the medicines to the ESI. It was learnt that she had floated eight benami firms to supply drugs to the ESI during the financial years 2016-17 and 2017-18 at exorbitant prices, by violating the medicine procurement protocols.

Now, the ED has initiated investigation into the scam, and registered a fresh case based on the previous cases registered by the Telangana Anti-Corruption Bureau (ACB). ED conducted raids at the residential premises of Devika Rani, Srihari Babu, V Srinivas Reddy, Mukunda Reddy, M Vinay Reddy, Burra Pramod Reddy, and also the business premises of Omni Group. In addition to huge amounts of cash, jewellery worth Rs 1 crore, blank cheques, property papers and lockers were seized.