ED probes illegal surrogacy, baby-selling racket, seizes ₹40cr worth properties
What's the story
The Enforcement Directorate (ED) has unearthed a massive money laundering operation linked to an illegal surrogacy and baby-selling racket linked to Hyderabad-based doctor Pachipala Namratha. The agency has traced nearly ₹40 crore in cash deposits and ₹20 crore in withdrawals, provisionally attaching 50 properties worth ₹29.7 crore across Hyderabad, Visakhapatnam, and Vijayawada. The investigation revealed that the money trail spans over a decade and was allegedly used to mask the illegal purchase and sale of newborns as legitimate medical expenses.
Financial breakdown
Estimated illegal surrogacy deliveries in 3 phases
According to The Times of India, the ED has estimated the total proceeds of crime at ₹29.7 crore, based on average amounts charged to childless couples at a Visakhapatnam clinic from 2014 to July 2025. The provisional attachment order details the estimated illegal surrogacy deliveries in three phases. From 2014 to 2018, there were an estimated 72 deliveries at an average of ₹10 lakh each, totaling ₹7.2 crore.
Financial scheme
Cash movement used for paying agents, procuring newborns
The investigation also focused on bank accounts linked to Namratha, her relatives, and associated hospitals. Between 2014 and 2025, around ₹40 crore was deposited in cash into these accounts while approximately ₹20 crore was withdrawn. This cash flow is believed to have been used to pay agents and procure newborns from vulnerable parents. The agency mapped a three-tier structure for fund movement with childless couples allegedly paying between ₹20 lakh-30 lakh per child through various payment methods into Namratha's accounts.
Asset attachment
Universal Srushti Hospital among attached properties
Among the 50 properties provisionally attached are Universal Srushti Hospital in Secunderabad and a hospital building in Vijayawada. A five-storey building generating rental income in Siddharthanagar, Visakhapatnam, has also been attached. Other assets include flats in Jayanth Towers held by Namratha and her husband, a residential plot in Shilpa Enclave Kondapur, flats Rams Pride Apartment Vijayawada among others.
Income scrutiny
Namratha's claims and ED's findings
Namratha has claimed that the funds came from consultancy services, rental income, and agricultural income. However, the ED said she failed to provide satisfactory explanations for the large volume of cash transactions during periods when her medical license was suspended. The TOI report stated how the scale of cash movement and property acquisitions over more than a decade illustrates how alleged proceeds of crime were generated and converted into assets.