ED Finds Quid Pro Quo In IMS Scam, Files PC Complaint

Hyderabad: The accused in the Insurance Medical Services (IMS) scam indulged in quid pro quo and invested ill-gotten money in purchasing properties, the Enforcement Directorate said in a case that was registered against 17 persons.

The ED, which attached movable and immovable properties worth '143.15 crore in the case, filed a prosecution complaint under the Prevention of Money Laundering Act, 2002 (PMLA) against 17 persons, including Dr Devika Rani, then director, Dr K. Padma, then joint director and others in the court of the Metropolitan Sessions Judge cum Special Court (PMLA) Hyderabad. The court has taken cognisance of the prosecution complaint.

ED officials initiated investigation on the basis of eight FIRs registered by the ACB, under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 against Dr Rani and others alleging that they had deviated from the laid down principles for procurement of medicines and medical equipment to benefit select vendors for illegal gratification and thus caused a huge loss to the government exchequer.

Investigations revealed that officials of IMS and private persons had hatched a conspiracy and deliberately created fake emergency situations and shortage of medical supplies so that they could issue purchase orders to select vendors, through local purchase route, in exchange of illegal gratification.

Further, payments to various suppliers were deliberately withheld and released only after bribes were paid. Benami entities were also created in connivance with Dr Rani. The suppliers, who were part of the conspiracy, earned abnormal profits and paid bribes to the IMS officials as quid pro quo. The bribe money was used by the IMS officials to purchase high value jewellery and immovable properties.