The ED has started the probe based on FIRs filed by the Mangalagiri police station of Andra Pradesh for criminal conspiracy, forgery, and cheating involving funds belonging to NRIAS (NRI Academy of Medical Sciences) located in the Guntur district. The case has been filed against Nimmagadda Upendranath, Mani Akkineni and other members of the NRIAS.
The money laundering case involves the alleged misappropriation of funds from Covid patients and applicants for admission.
On May 11, the Enforcement Directorate (ED) provisionally attached movable and immovable properties worth around Rs 307.
In a statement given by ED, “the provisionally attached properties include Rs 15.61 crore kept in bank accounts, land and buildings situated in Andhra Pradesh and Telangana”.
According to the investigation, NRIAS members and officials fraudulently syphoned off funds and diverted them for personal gains. The agency stated, “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. These funds were subsequently diverted by the members and officials of the society”.
Even the admission fee for MBBS/PG students who are enrolled under the management quota was collected in cash. The ED said, “They also resorted to collection of fees from students under 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 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 said private limited company instead of the bank accounts of the society, the agency said.
Additionally, money from the society was misappropriated and given to affiliated companies and other parties under the pretence of paying taxes and financing construction projects.
Previously in December 2022, the ED conducted searches in this matter and seized incriminating evidence. During these searches, they found parallel cash books, fake ledgers, and evidence of collecting and withdrawing unaccounted cash from COVID-19 patients, MBBS students, and PG students.
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