ED Investigation Exposes Massive Financial Network in Alleged Surrogacy Scam
The Enforcement Directorate's (ED) ongoing investigation into the alleged illegal surrogacy and baby selling network connected to Dr. Pachipala Namratha has uncovered an extensive money laundering operation spanning over a decade. The probe has revealed staggering financial transactions, including nearly Rs 40 crore in cash deposits, approximately Rs 20 crore in cash withdrawals, and the provisional attachment of 50 properties valued at Rs 29.7 crore across Hyderabad, Visakhapatnam, and Vijayawada.
Proceeds of Crime Estimated at Rs 29.7 Crore
According to the agency's detailed provisional attachment order, the ED has calculated the proceeds of crime at Rs 29.7 crore. This estimation is based on comprehensive analysis of average amounts allegedly charged to childless couples at a clinic in Visakhapatnam between 2014 and July 2025, combined with funds collected from victims who were reportedly deceived under the guise of legitimate IVF treatment.
The investigation has systematically divided the estimated illegal surrogacy deliveries into three distinct chronological phases:
- 2014-2018: Investigators estimated 72 deliveries at an average of Rs 10 lakh each, totaling Rs 7.2 crore
- 2019-2023: The ED calculated 110 deliveries at an average of Rs 14 lakh each, amounting to Rs 15.4 crore
- 2024-2025: Authorities estimated 31 deliveries at an average of Rs 23 lakh each, adding Rs 7.1 crore to the total
Bank Account Analysis Reveals Cash Movement Patterns
A central focus of the investigation has been bank accounts associated with Dr. Namratha, her relatives, and hospitals connected to her operations. The ED's forensic examination discovered that between 2014 and 2025, approximately Rs 40 crore was deposited in cash into these accounts. During this same period, about Rs 20 crore was withdrawn in cash transactions.
Investigators believe this substantial cash trail was utilized to compensate agents and procure newborn babies from vulnerable biological parents. The agency has identified the specific pattern of deposits and withdrawals as crucial evidence for tracing the complete money laundering pathway.
Three-Tier Financial Structure Uncovered
The ED has meticulously mapped what they describe as a sophisticated three-tier movement of funds within the alleged illegal network:
- First Level: Childless couples allegedly paid between Rs 20 lakh and Rs 30 lakh per child through various payment methods including cheques, bank transfers, or direct cash deposits into Namratha's accounts
- Second Level: Funds were subsequently transferred to lead agents, including Dhanasri Santoshi, while substantial amounts were immediately withdrawn in cash to obscure the financial trail. This included specific transactions such as Rs 14.60 lakh paid to associate SSS Sai Kumar
- Third Level: Payments allegedly reached biological parents, who reportedly received approximately Rs 3.5 lakh for a female child and Rs 4.5 lakh for a male child. Sub-agents and couriers were compensated with commissions averaging Rs 50,000 per case, with variations depending on specific delivery circumstances
The ED has concluded that these financial transactions and communications were deliberately structured to present the illegal purchase of children as legitimate medical and surrogacy expenses.
Extensive Property Portfolio Attached
Among the 50 properties provisionally attached by the Enforcement Directorate are several significant healthcare and residential assets:
- 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
- Multiple flats in Jayanth Towers, Bachupally registered in the names of Namratha and her husband
- A residential plot in Shilpa Enclave, Kondapur
- Flats in Rams Pride Apartment and other locations in Vijayawada
- A villa at Palm Ridge Villas in Kondapur where Namratha resided
The attachment order also includes more than 15 parcels of agricultural land in Balemarru village in Guntur district and Dharanikota in Amaravati, land parcels in Nunna and Vedurupavuluru near Vijayawada, and vacant plots in Madhurawada in Visakhapatnam and Kukatpally in Hyderabad.
Defense Claims and Investigative Findings
During the investigation, Dr. Namratha reportedly claimed that the substantial funds originated from legitimate sources including consultancy services, rental income, and agricultural earnings. However, the ED has stated that she failed to provide satisfactory explanations for the extraordinary volume of cash transactions, particularly during periods when her medical license was suspended.
The Enforcement Directorate has emphasized that the sheer scale of cash movement, extensive property acquisition, and layered structure of financial transactions collectively illustrate how the alleged proceeds of crime were systematically generated, circulated, and converted into tangible assets over multiple years.
