A group of senior specialist doctors in Hyderabad has filed a formal complaint with the Central Crime Station. They allege a massive financial fraud exceeding Rs 38 crore. The complaint targets the former managing director of a private hospital located in Banjara Hills.
Investment Promise Turns Sour
Dr. Chokka Rajesh Vasu, a plastic surgeon, submitted the complaint on Tuesday. He named Dr. Venugopal Kakuntla as the primary accused. The doctors claim they were enticed to invest in the hospital venture with promises of substantial returns. These returns never materialized.
The group comprises fourteen senior doctors. It includes cardiologists and urologists. They have leveled serious accusations beyond the investment fraud.
Serious Allegations Surface
The complaint details multiple alleged wrongdoings. The doctors accuse Dr. Kakuntla of over-billing Covid-19 patients during the pandemic. They further allege a conspiracy with his brother, Hemanth Kakuntla, to divert hospital funds. This diverted money was reportedly used to purchase real estate and gold.
Based on the complaint, CCS police have registered a formal case. The charges include Sections 406 and 409 of the IPC for criminal breach of trust. Section 477-A for falsification of accounts is also invoked. The case includes Section 120b for criminal conspiracy. The probe targets Dr. Kakuntla, his brother, and others.
The Investment Scheme Details
The alleged fraud dates back to 2014 and 2015. Dr. Kakuntla, then the hospital MD, along with his brother, persuaded colleagues to buy equity. They promoted the idea of a transparent, doctor-controlled institution.
The investment plan was structured clearly. Promoter-directors would retain 51% of shares. The total share capital was Rs 2.2 crore with shares priced at Rs 30 each. The remaining 49% was to be allotted to investing doctors. However, these shares were offered at a higher price of Rs 50 per share.
Massive Financial Losses Claimed
Subsequent investments by the doctors totaled over Rs 38 crore. Specific investments mentioned include:
- Dr. Vasu invested Rs 40 lakh.
- Dr. KVR Prasad invested Rs 10 crore.
- Dr. Gangadhar and a family member invested Rs 17 crore.
- Dr. Ravi Palwai invested Rs 11 crore.
The doctors claim the accused raised approximately Rs 100 crore from various other doctors as well.
Operations Reveal Further Issues
Hospital operations began in 2015. The doctors allege the brothers retained most of the equity despite the investments. They repeatedly declared annual losses between Rs 10 to Rs 20 crore. This occurred despite reportedly healthy occupancy figures.
A troubling pattern emerged with patient payments. Money was routinely routed to a jewellery outlet near the hospital. This outlet was allegedly owned by a relative. The purpose was to suppress the hospital's recorded revenue.
"They diverted investor money into the purchase of high-value real estate and large quantities of gold," the complainant stated.
Specific Transaction Under Scrutiny
The petition highlights a specific transaction. Dr. Kakuntla allegedly purchased five lakh shares from investor Dr. Prasad. He issued a cheque for Rs 1 crore from the hospital's account. This payment was later reclassified as a "professional advance." This action concealed the actual nature of the share purchase payment.
Covid-19 Billing Controversy
During the Covid-19 surge, further allegations arose. Bills ranging from Rs 10 to Rs 20 lakh were allegedly raised per patient. Hospital records, however, showed far lesser amounts. Families who demanded proper receipts faced intimidation.
The complaint claims these families were "threatened and coerced to leave the hospital premises."
Police Investigation Underway
A CCS official provided an update on the case. "The investigation is currently at a preliminary stage. We are verifying the allegations and the evidence available. Based on the preliminary probe findings, we will initiate appropriate legal action," the official said.
The case has sent shockwaves through Hyderabad's medical community. It highlights significant trust issues within private healthcare investments. The police probe will determine the validity of these serious financial allegations.
