ED Uncovers Massive Financial Network in Illegal Surrogacy Case
The Enforcement Directorate (ED) has made significant progress in its investigation into an alleged illegal surrogacy and baby selling network linked to Dr. Pachipala Namratha, uncovering a vast money trail involving nearly Rs 40 crore in cash deposits, Rs 20 crore in withdrawals, and the provisional attachment of 50 properties valued at Rs 29.7 crore across Hyderabad, Visakhapatnam, and Vijayawada.
Provisional Attachment Order Details Financial Crimes
According to the agency's provisional attachment order, the probe has revealed a sophisticated financial network used to launder proceeds of crime over more than a decade. The ED estimated the total proceeds of crime at Rs 29.7 crore, calculated based on average amounts allegedly charged to childless couples at a clinic in Visakhapatnam between 2014 and July 2025, along with funds collected from victims who were reportedly cheated under the guise of IVF treatment.
Phased Breakdown of Illegal Surrogacy Deliveries
The provisional attachment order divides the estimated illegal surrogacy deliveries into three distinct phases:
- 2014 to 2018: Investigators estimated 72 deliveries at an average of Rs 10 lakh each, totaling Rs 7.2 crore.
- 2019 to 2023: The ED estimated 110 deliveries at an average of Rs 14 lakh each, amounting to Rs 15.4 crore.
- 2024 to 2025: It estimated 31 deliveries at an average of Rs 23 lakh each, adding Rs 7.1 crore to the overall figure.
Bank Account Analysis Reveals Cash Transactions
A key focus of the investigation was on bank accounts connected to Namratha, her relatives, and hospitals associated with her. The ED found that between 2014 and 2025, approximately Rs 40 crore was deposited in cash into these accounts. During the same period, about Rs 20 crore was withdrawn in cash. Investigators believe this cash trail was utilized to pay agents and procure newborn babies from vulnerable biological parents.
Three-Tier Movement of Funds Exposed
The agency described the pattern of deposits and withdrawals as central to tracing the money trail. The order also notes that Namratha claimed the funds originated from consultancy services, rental income, and agricultural income. However, the ED stated she failed to provide satisfactory explanations for the large volume of cash transactions, especially during periods when her medical licence was suspended.
Investigators mapped a three-tier movement of funds:
- First Level: Childless couples allegedly paid between Rs 20 lakh and Rs 30 lakh per child through cheques, bank transfers, or cash into Namratha's accounts.
- Second Level: Funds were transferred to lead agents, including Dhanasri Santoshi, with large sums allegedly withdrawn in cash immediately to obscure the trail. This included Rs 14.60 lakh paid to associate SSS Sai Kumar.
- Third Level: Payments allegedly reached biological parents, who were paid around Rs 3.5 lakh for a female child and Rs 4.5 lakh for a male child. Sub-agents and couriers received commissions of about Rs 50,000 per case, with variations depending on the delivery.
The ED asserted that these financial transactions and communications were structured to present the illegal purchase of children as legitimate medical and surrogacy expenses.
List of Attached Properties Across Multiple Cities
Among the attached assets are:
- Universal Srushti Hospital building in Secunderabad
- A hospital building in Vijayawada
- An under-construction hospital building in Maharanipet, Visakhapatnam
- A five-storey building in Siddharthanagar, Visakhapatnam, generating rental income
- Flats in Jayanth Towers, Bachupally, in the names of Namratha and her husband
- A plot in Shilpa Enclave, Kondapur
- Flats in Vijayawada
- A villa at Palm Ridge Villas, Kondapur, where Namratha resided
- 15 parcels of agricultural land in Balemarru village, Guntur district, and Dharanikota, Amaravati
- Land in Nunna near Vijayawada
- Vacant plots in Madhurawada, Visakhapatnam, and Kukatpally, Hyderabad
The investigation continues as the ED works to unravel the full extent of this illegal network and ensure accountability for the alleged crimes.
