The Directorate of Enforcement (ED), Hyderabad Zonal Office, arrested Dr. Athuluri Namratha Pachipalli on 12 February 2026 under the Prevention of Money Laundering Act (PMLA), 2002. The arrest came during the investigation into an illegal surrogacy racket allegedly operated by her under the name of Universal Srusthi Fertility & Research Centre.
Background of Investigation
The probe was initiated based on multiple FIRs registered at Gopalapuram Police Station, Hyderabad, which alleged that Dr. Namratha was involved in fraud, cheating, criminal conspiracy, illegal surrogacy, and child trafficking. Earlier, the police had arrested Dr. Namratha and her associates in connection with these offences, and she was released on bail on 27 November 2025.
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Modus Operandi of the Surrogacy Racket
ED investigation revealed that Dr. Namratha collected large sums of money from childless couples under the promise of delivering a baby through a surrogate mother. To present the procedure as legitimate, the couples’ gametes were collected for implantation. However, the newborns were sourced from poor and vulnerable parents who were unable to raise the child or were seeking abortion.
A network of agents and sub-agents facilitated the racket by identifying pregnant women from disadvantaged backgrounds and luring them with financial incentives to give up their child at birth. It was found that Dr. Namratha paid approximately ₹3.5 lakh for female infants and ₹4.5 lakh for male infants. Deliveries were conducted at her Visakhapatnam hospital, since the license of her Secunderabad facility had been revoked.
Forgery and Financial Transactions
The ED probe further revealed that birth certificates were forged, and documents submitted to municipal authorities listed the childless couples as parents instead of the biological parents. Several couples were defrauded in this manner, with significant sums collected through cheques and cash payments. A portion of these funds was disbursed to agents, sub-agents, and biological parents of the trafficked children.
Bank account analyses confirmed that the misappropriated funds were systematically routed as Proceeds of Crime, highlighting an organised mechanism to divert, layer, and distribute money connected to the illegal surrogacy operations.
Arrest and Judicial Custody
After her release on bail, Dr. Namratha remained evasive and non-cooperative during her statements, despite being confronted with evidence linking her to the proceeds of crime and money laundering offences.
Accordingly, ED arrested Dr. Athuluri Namratha Pachipalli on 12 February 2026 and produced her before the Hon’ble MSJ Court, Nampally, Hyderabad. The Court remanded her to judicial custody until 26 February 2026.
Ongoing Investigation
The ED has stated that the investigation is still in progress. The probe aims to determine the involvement of other staff and agents and map the complete flow of funds and children within the racket.
This case highlights ED’s proactive stance in tackling money laundering and human trafficking, ensuring that illegal proceeds and criminal operations are thoroughly investigated and disrupted. The arrest and ongoing inquiry send a strong message that financial crimes linked to child trafficking and surrogate exploitation will not be tolerated.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
