The Enforcement Directorate (ED) on Saturday conducted searches at seven places in Hyderabad in connection with the money laundering investigation into the large scale scam in Telangana IMS (Insurance Medical Services) ESI Department.
An ED official said that the agency carried out searches at seven location in Hyderabad and seized large amount of incriminating evidence, huge amount of unaccounted cash to the tune of Rs 3 crore, a crore worth of jewellery, blank cheques, property papers and lockers.
The official said that money laundering probe was initiated against the then Director of IMS Devika Rani, her husband, Srihari Babu aka Babji of Omni Group and several others on the basis of eight FIRs registered by Telangana ACB on the allegations of financial irregularities in the purchase and supply of medicines and surgical kits, huge price escalation, gross deviations from ESIC and government norms, creation of fake indents, fake bills, diversion of medicines and falsification of records.
The scam has generated proceeds of crime (POC) approximately from Rs 100 to Rs 200 crore.
The official said that the financial probe agency searches began on Saturday morning at the residential premises of Devika Rani, Srihari Babu, V Srinivas Reddy, son-in-law of ex-Labour Minister Late Nayani Narsimha Reddy, Mukunda Reddy, Personal Secretary to ex-Labour Minister, M Vinay Reddy, brother-in-law of Mukunda Reddy, Burra Pramod Reddy and business premises of Omni Medi.
The official said that during the course of searches, unaccounted cash of around Rs 1.50 crore, Rs 1.15 crore, Rs 45 lakh is seized from the residential premises of V. Srinivas Reddy, Burra Pramod Reddy and M. Vinay Reddy respectively.
The ED also recovered several incriminating evidence documents and digital evidence.