HYDERABAD: In an interesting turn in the investigation of the Rs 11.50 crore scam relating to the purchase of medicines in the Insurance Medical Services (IMS) department, former Labour Minister Nayani Narasimha Reddy’s son-in-law V Srinivasa Reddy’s name has come up, causing a flutter in political circles, even as Anti Corruption Bureau (ACB) sleuths arrested seven IMS officers, including director Ch Devika Rani.
According to ACB sources, Srinivasa Reddy, a corporator from Ramnagar now, allegedly put pressure on Devika Rani to place indents for medicines from companies he suggested in his capacity as president of the employees union of SI hospitals. Srinivasa Reddy has since denied all allegations.
“I have not done anything illegal. All allegations against me are baseless. Let those who are levelling allegations bring proof. I am ready to face any probe since I am not guilty,” he said.
Though Srinivasa Reddy’s name has not been included in the remand report, ACB officials are keeping him under their scanner.
Stating that medical representatives of pharma companies played key role in the IMS department fraud, officials of the Anti Corruption Bureau mentioned in the remand report that the accused — including IMS director Dr Ch Devika Rani, joint director of Warangal K Padma and assistant director of stores Dr K Vasantha Indira — illegally accepted indents from pharma companies.
The investigation officials said the accused officers colluded with four pharma companies, causing a loss to the government to the tune of Rs 11.50 crore.
In the remand reports, the Anti-Corruption Bureau (ACB) stated that medical representatives Ch Siva Nagaraju, of Omni Medi, and its managing director Srihari, played a key role in obtaining bills to supply indented medicines.
Devika Rani, Padma and Vasantha Indira deliberately bought more medicines than hospitals needed. In their 44-page remand report, the investigation officers said the accused officers colluded with the four pharma companies and their representatives, causing a loss to the government to the tune of `11.50 crore.
The agency said it needs to probe the case further to identify those involved in the case directly and indirectly. The arrested persons include IMS director Dr Ch Devika Rani, joint director of Warangal Dr K Padma, assistant director Dr K Vasantha Indira, Shamshabad ESI dispensary pharmacist M Radhika, and Omni Medi representative Ch Siva Nagaraju.