ED attaches assets worth Rs.307.61 cr of NRI Academy of Medical Sciences in money laundering case

The ED investigation revealed that members and officials of NRIAS fraudulently siphoned off huge funds of the society and diverted them for their personal gain

PGurus Newsdesk

May 12, 2023

The ED investigation revealed that members and officials of NRIAS fraudulently siphoned off huge funds of the society and diverted them for their personal gain

ED attaches assets worth Rs.307.61 cr against NRIAS members

The Enforcement Directorate (ED) has attached movable and immovable property worth Rs.307.61 crore in a money laundering case against members of the NRI Academy of Medical Sciences (NRIAS) Nimmagadda Upendranath, Mani Akkineni, and others.

The ED investigation revealed that members and officials of NRIAS fraudulently siphoned off huge funds of the society and diverted them for their personal gain.

An official said that the provisionally attached properties include Rs.15.61 crore in bank accounts, land, and buildings in Andhra Pradesh and Telangana. Several FIRs were also registered at different police stations of Andhra Pradesh against the members of the society.

A money laundering investigation has been initiated by the ED on the basis of the FIRs registered by the Mangalagiri P S, Andhra Pradesh Police, under various sections of the IPC against Nimmagadda Upendranath, Mani Akkineni and others for criminal conspiracy, cheating, and forgery in respect of funds of NRIAS (a society registered under the Andhra Pradesh Societies Registration Act, 2001.

During COVID-19, patients were charged exorbitant rates (much above the rates prescribed by the government) and the charges were collected in cash which was never recorded in the books of accounts and was subsequently diverted by the members and officials of the society.

Similarly, the admission fee from MBBS/ PG students under the management quota was collected in cash. They also resorted to the collection of fees from students under the management quota in foreign currency in some of their societies formed in the USA instead of receiving the same in the accounts of NRIAS in India.

They also floated a private limited company, NRIAS Pvt. Ltd., which was deliberately chosen to deceive and induce APMSIDC (Andhra Pradesh Medical Services and Infrastructure Development Corporation) and others to deposit the amounts payable to the society for certain projects directly into the accounts of the private limited company instead of the bank accounts of the society. Further, funds of the society were diverted to associated entities and others in the guise of payment of taxes, construction activities etc.

Searches had been conducted earlier by the ED in this case in December 2022 and incriminating material evidencing collection and withdrawal of the unaccounted cash generated from COVID-19 patients/ MBBS and PG students, parallel cash books, and dummy ledgers were seized.

[With Inputs from IANS]

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