How Andhra based NRI Academy of Sciences cheated covid patients, medical students

Guntur: A week following the Enforcement Directorate's searches against M/s NRI Academy of Sciences, revealed that the members collected huge amounts from covid patients and medical students for personal gains. ED has booked a case under the Prevention of Money Laundering Act, 2002 (PMLA).

It began with raids against M/s NRI Academy of Sciences members residing in Vijayawada, Kakinada, Guntur and Hyderabad. The teams raided on the residence of the present and former directors of the hospitals, including Nimmagadda Upendranath, Akkineni Mani, Uppala Srinivasa Rao, and Nalini Mohan.

ED took up probe based on the FIR registered by the Andhra Pradesh Police. It is alleged that the academy diverted funds of the society. While some of the society members in the name of construction of buildings, collected huge amounts of money from COVID patients. "The institute is said to have siphoned off huge amounts of money from medical students for admission in MBBS course over and above the figures mentioned in the books of accounts, diversion of funds payable to NRI Society by floating a company by similar name such as NRIAS Private Limited" ED said in its statement

According to sources, there were allegations that NRI Hospital misled funds by issuing fake/manual receipts for amounts received from relatives of covid patients while they charged high amounts. The amounts were not entered in the billing report and were diverted. It was found that the hospital had not recorded details of around 1,500 patients for Covid-19 treatment. According to the officials, during the pandemic, the NRI Hospital asked patients to deposit Rs. 2 lakhs for covid treatment before admission, promising reimbursement. However, all the funds were utilized and the patients were given fake bills for the deposited amount.

Raids are also being conducted at Akkineni Women's Hospital of Akkineni Uma who allegedly diverted NRI Hospital's funds. She was previously one of the directors of NRI Hospital.

The raids resulted in seizer of 53 documents of immovable properties suspected to be involved in money laundering. The teams also seized various other incriminating documents and electronic devices found connected with the alleged diversion of funds.

Medical scam

It may be recalled that in June 2022, the police unearthed a multi-crore scam involving the management of NRI Hospital in Mangalagiri, Guntur district. Eleven persons, including Dr. Nimmagadda Upendranadh and Akkineni Mani of NRI Academy of Sciences, were booked on charges of illegal transfer of crores from the academy by creating fictitious records and accounts and taking advantage of the covid pandemic.

In a complaint filed by Gadddipati Srinivasa Rao, an office assistant at the NRI Academy, he alleged that the accused created a fictitious account under the name of buildings and transferred Rs. 4.30 cores during the period 5 April 2017 and 15 May 2018. However, no constructions were undertaken on the academy's premises at Chinakakani.

Allegations were also raised that massive amounts were received from students for management quota seats for the 2018-19 academic session and an amount of Rs. 3.07 crores were diverted by creating a fictional account in the name of MBBS Fee Suspense account.