Hyderabad: P. Srinivasa Reddy, managing director of Vaishnavi Enter-prises, the medical agency that colluded with officials of ESI and caused a loss of Rs 4.09 crore to the state government, has been arrested by the Anti-Corruption Bureau.
The ACB, which is probing the Insurance Medical Services (IMS) scam case, disclosed on Friday that Srinivasa Reddy, a resident of Alwal, colluded with the Director, Assistant Director and other officials of IMS to get purchase orders of Rs 5.48 crore on rate contact. No guidelines were followed in the process.
The actual cost of the orders was Rs 1.39 crore. The remaining Rs 4.09 crore was swindled by Srinivasa Reddy and the officials involved.
ACB officials said no specific reason was mentioned for placing such huge orders to the agency. The rates were also much higher than those of the rate contract.
“Accused Srinivasa Reddy induced and influenced officials of ESI and obtained purchase orders violating the procedures. Two shell firms, namely Mahidhara Medicals and Surgicals and Jai Sairam Distributors, were floated by the Director of ESI and a pharmacist K. Nagalakshmi, with the help Srinivasa Reddy and his brother P. Rajeshwara Reddy. The shell companies were looked after by Srinivasa Reddy at the behest of the accused officials,” said the ACB,
The accused has been arrested and produced before the ACB court....