ESI Medicine Scam : Shell company boss arrested
The Anti-Corruption Bureau (ACB) officials on Friday arrested one more accused by name P Srinivasa Reddy in Insurance Medical services (IMS) multi-crore medicine purchase scam case.
Hyderabad: The Anti-Corruption Bureau (ACB) officials on Friday arrested one more accused by name P Srinivasa Reddy in Insurance Medical services (IMS) multi-crore medicine purchase scam case.
He is the managing director of Vaishnavi Enterprises and arrested by the sleuths for committing offences under various sections which was registered on Thursday on the allegations of corruption, conspiracy and collusion with government officials and others for pecuniary advantage for himself, former director of IMS Ch Devika Rani and others.
The officials found that the former director and pharmacist K Nagalakshmi with the help of P Rajeshwara Reddy and his brother P Srinivasa Reddy floated two shell firms namely Mahidhara Medicals and Surgicals and Jai Sairam Distributors.
The accused Srinivasa Reddy used to look after the work of the two shell firms at the behest of the former director and other officials and he used to distribute the sale proceeds of the two firms to Devika Rani and other officials.
The accused is being produced before the ACB court for judicial custody and are investigating the case.
The ACB sleuths said the accused personally pursued and colluded with the former director, assistant director and other officials with common intention between them during 2016-18 and got Purchase Orders worth Rs 5.48 crore for rate contract items without following guidelines of ESIC and GOs of the State government.
As the cost of the orders in the rate contract is Rs 1.39 crore and the IMS officials spent excess amount of Rs 4.09 crore and have caused loss to the government exchequer.
Further, they have not mentioned any specific reason for placing huge orders to Vaishnavi Enterprises which belongs to the accused.