New Delhi: Assets worth more than Rs 307 crore of a society and its office bearers who run an Andhra Pradesh-based medical college have been attached under the anti-money laundering law in a case linked to the alleged diversion of money received from Covid patients and that from admission-seeking students, the ED said on Thursday.
The action has been taken against the NRI Academy of Medical Sciences (NRIAS) located in Guntur district of the state and its executives identified as Nimmagadda Upendranath, Mani Akkineni and some others.
“The provisionally attached properties include Rs 15.61 crore kept in bank accounts, land and buildings situated in Andhra Pradesh and Telangana,” the Enforcement Directorate (ED) said in a statement.
The total value of the attachment, carried out by issuing a provisional order under the Prevention of Money Laundering Act, is Rs 307.61 crore.
Probe found, the ED alleged, that the members and officials of NRIAS “fraudulently” siphoned off huge funds of the society and diverted them for their personal gains.
“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,” it said.
Similarly, admission fee from MBBS/PG students under management quota was collected “in cash”, the agency said.
The management of the society collected management quota fees from students in foreign currency in some of their societies formed in the US instead of receiving them in the accounts of NRIAS in India, the ED found.
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.
“The funds of the society were also diverted to associated entities and others in the guise of payment of taxes, construction activities,” it said.
The money laundering case against the society and its members was registered stems from multiple FIRs filed by the Andhra Pradesh Police against the accused.
This post was last modified on May 11, 2023 9:43 pm