ED arrests doctor in illegal surrogacy and child trafficking case under PMLA

The Hyderabad office of Directorate of Enforcement (ED) arrested Dr Athuluri Namratha alias Pachipalli Namratha under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an alleged illegal surrogacy and child trafficking racket.

According to the Directorate of Enforcement, the arrest was made on Thursday during the course of investigation into activities carried out in the name of Universal Srusthi Fertility and Research Centre.

The ED initiated its probe on the basis of multiple FIRs registered by Gopalapuram police station, Hyderabad, relating to charges of fraud, cheating, criminal conspiracy, illegal surrogacy and child trafficking. Police had earlier arrested Dr Namratha and others during their investigation. She was granted bail on November 27, 2025.

During the PMLA investigation, the ED recorded statements of Dr Namratha and her associates in judicial custody and conducted searches at various premises. Officials said documentary evidence was seized indicating her involvement in the racket since 2014. The investigation revealed that she continued the illegal operations even after multiple cases had been registered against her and her medical licence had been suspended by the authorities.

According to investigators, Dr Namratha collected substantial sums of money from childless couples on the promise of providing babies through surrogacy. To present the process as legitimate, gametes of the couples were collected for implantation in a surrogate mother. Newborn babies were instead sourced from poor and vulnerable parents who were unable to raise the child or were considering terminating the pregnancy.

A network of agents and sub-agents was allegedly involved in identifying and persuading economically distressed pregnant women to give up their babies in exchange for money. The ED stated that Dr Namratha allegedly paid approximately ₹3.5 lakh for a female child and ₹4.5 lakh for a male child. Such deliveries were conducted at a hospital in Visakhapatnam after the licence of her Secunderabad hospital was revoked.

Investigators further found that birth reports submitted to municipal authorities were forged to reflect the names of the commissioning couples as parents, instead of the biological parents. The agency said several couples were cheated in this manner and large sums were collected through cheques and cash.

An analysis of bank accounts maintained by Dr Namratha revealed that funds received from childless couples were subsequently transferred to agents and sub-agents, who in turn made payments to the biological parents of the trafficked infants.

The ED stated that after being released on bail, Dr Namratha remained evasive and non-cooperative during questioning despite being confronted with evidence relating to the alleged proceeds of crime and money laundering.

She was produced before the MSJ Court, Nampally, which remanded her to judicial custody until February 26, 2026. Further investigation is under way.