Medicine Purchase Scam : IMS former director, pharmacist siphoned Rs 3 crore with shell firms

Hyderabad: The Anti-Corruption Bureau (ACB) officials, who have intensified their investigation in multi-crore medicine purchasing scam of ESI found that the former Insurance Medical Services (IMS) Director Ch Devika Rani along with the pharmacist Nagalakshmi siphoned off huge money by establishing shell companies in the name of her benamis.

They found that she has formed two shell companies on the name of Srinivas Reddy, who is the brother of Rajeshwar Reddy, the owner of Teja Pharma company in Alwal.

The officials have got primary evidences against Devika Rani and Nagalakshmi that they have siphoned more than Rs 3 crore through these shell companies.

The officials already recovered key documents and account transaction evidences regarding the siphoning off the amount. They also found that Devika Rani bought gold and diamonds with fraud money.

To unearth more facts related to the shell companies and the total amount siphoned by her, the sleuths on Thursday has conducted searches in the house and office of Srinivas Reddy in Alwal and also in two other places.

According to ACB sources, they have also recovered several key documents during the searches.