IMS scam : One more shell firm MD held

In continuation of the crackdown on persons involved in multi-crore Insurance Medical Services (IMS) scam, Anti-Corruption Bureau personnel on Friday arrested managing director of Vaishnavi Enterprises P Srinivasa Reddy.

ACB sleuths conducted searches at the house and offices of Mr. Reddy in Alwal and Bowenpally on Thursday and seized several incriminating documents to prove his role in the scam.

He was arrested on charges of corruption, conspiracy and collusion with government officials and others for pecuniary advantage. With this, the number of people arrested in connection with the scam is 17, which includes former IMS director Ch. Devika Rani.

Between 2016-18, Mr. Reddy got purchase orders worth ₹5.48 crore for rate contract medicines and other surgical equipment without following the guidelines of ESIC and State government. “The cost of the order in rate contract is ₹1.39 crore and the excess amount spent from the government exchequer in the local purchase is ₹4.09 crore,” an ACB official said.

The accused had ‘induced and influenced’ Dr. Devika Rani and her colleagues and obtained purchase orders by violating the purchase procedure, the investigators said.

Further, he said that Dr. Devika Rani with the help of pharmacist K. Nagalakshmi and others floated two shell companies — Mahidhara Medicals and Surgical and Jai Sairam Distributors — to supply medicines to ESI Hospitals by quoting higher prices.

“Reddy used to maintain and distribute the sale proceeds of the firm at the behest of Dr. Devika Rani and other officials,” he said.

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Printable version | Mar 29, 2020 12:42:29 AM | https://www.thehindu.com/news/cities/Hyderabad/ims-scam-one-more-shell-firm-md-held/article29861514.ece

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