Pharmacist tenth person arrested by ACB in IMS scam

HYDERABAD: ACB sleuths on Sunday arrested a pharmacist in connection with the multi-crore Insurance Medical Services (IMS) scam. With the latest arrest, the number of arrests in the case has reached 10. The anti-corruption team is also conducting searches at the house of one Aravind Reddy, in connection with the case. K Nagalaxmi, a pharmacist, with ESI Hospital in Nacharam was arrested from her house in Kukatpally in a case registered on September 25, 2019 pertaining to the IMS scam.
According to ACB officials , Nagalaxmi in collusion with suspended IMS Director Dr Ch Devika Rani, assistant director (stores) Dr K Vasantha Indira and Managing Director of Life Care Drugs B Sudhakar Reddy, had entered into a criminal conspiracy and duped the government of Rs 9.28 crore.
“In 2017 and 2018, Nagalaxmi and the other accused had issued medicine purchase orders to Life Care Drugs and some other firms, procuring drugs from the local market at a very high rate. The accused did not procure the medicines from the rate contract firms and caused a loss of Rs 9.28 crore. They procured the medicines in violation of guidelines issued by central and state governments,” said an ACB official.
Nagalaxmi in collusion with Vasantha Indira, had also fabricated the medicine stock records at Cherlapally dispensary and caused Rs 17 lakh loss to the government. Nagalaxmi was produced before the magistrate and remanded in judicial custody.
At the time of this report, the ACB was conducting searches at the house of Aravind Reddy near Kompally. “Aravind Reddy runs a small clinic. We have information that he was working with suspended joint director of IMS Dr K Padma in disposing the siphoned medicines in the market,” an ACB investigator said.