Officials from the Directorate of Enforcement (ED) conducted searches at 16 locations in Hyderabad, Khammam, Karimnagar and other places across Telangana, under the provisions of the Prevention of Money Laundering Act (PMLA) on Thursday (June 22) in connection with the postgraduate medical seat-blocking scam.
During the search, officials said they recovered and seized unaccounted cash of ₹1.4 crore from the premises of Malla Reddy Institute of Medical Sciences. ED also froze ₹2.89 crore in a bank account of Malla Reddy Institute of Medical Sciences, where the cash collected against the medical PG admissions was suspected to have been deposited.
The ED had recorded a case of money laundering in February, following an FIR registered by the Matwada Police of Warangal. The complaint, filed by the then Registrar of the Kaloji Narayana Rao University of Health Sciences (KNRUHS) against unknown persons, alleged that some agencies were involved in seat blocking in collusion with students/private institutions in Telangana and other States. It was also alleged that they were involved in obtaining relevant documents of candidates required for registration under KNRUHS
