The Enforcement Directorate on Saturday said it conducted raids in Telangana, including against the son-in-law of former state minister late Nayani Narsimha Reddy, in connection with a money laundering probe linked to alleged fraud in the IMS and ESIC departments of the state.
The central probe agency in a statement said that it has seized a “large amount of incriminating evidence, unaccounted cash to the tune of Rs 3 crore, jewellery of Rs 1 crore, blank cheques, property papers and lockers etc” during searches at seven locations in Hyderabad.
Raids are still being conducted, the Enforcement Directorate (ED) said.
Searches were carried out at the residential premises of Dr Devika Rani, Srihari Babu alias Babji, V Srinivas Reddy, the son-in-law of Nayani Narsimha Reddy, Mukunda Reddy, personal secretary to the former minister, M Vinay Reddy, the brother-in-law of Mukunda Reddy, Burra Pramod Reddy and business premises of Omni Medi, it said.
“Unaccounted cash of around Rs 1.50 crore, Rs 1.15 crore, Rs 45 lakh was seized from the residential premises of V Srinivas Reddy, Burra Pramod Reddy and M Vinay Reddy respectively,” the ED said.
The agency said it initiated the probe in the case under provisions of the Prevention of Money Laundering Act (PMLA) against the then director for IMS (Insurance Medical Services) Dr Devika Rani, her husband Srihari Babu alias Babji of Omni Group and several others on the basis of eight FIRs registered by the Telangana anti-corruption bureau.
The bureau charged them on allegations of financial irregularities in the purchase and supply of medicines and surgical kits, huge price escalation, gross deviations from the Employee State Insurance Corporation (ESIC) and government norms.
They were also charged for creation of fake indents, fake bills, diversion of medicines, falsification of records among others.
“The scam has generated proceeds of crime of about Rs 100-Rs 200 crore,” it alleged.