ED files 15 cases for medical malpractice amid threat of third Covid wave

Probe agency identifies a trail of close to Rs 50 cr

Ahead of the threat of a third wave, the Enforcement Directorate (ED) has so far booked 15 money laundering cases in various corrupt practices related to Covid-related essentials. According to an initial estimation by the agency, around Rs 50 crore was allegedly laundered, involving about three dozen entities in different cities, including Chennai and Bengaluru.
 
“Over a dozen cases were recorded for investigation involving illegal practices such as hospital bed blocking, sale of equipment and life-saving drugs at exorbitant prices, fake Covid tests and even cases of bogus vaccination camps,” said an official. According to the official, two well-known hospitals, including one in Chennai, are under scanner for providing beds at exorbitant prices. “We are awaiting more inputs from other state agencies and local police of the regions,” he added.
 
Sources say since investigation is still in progress, proceeds of the crime are expected to touch Rs 100 crore in these matters. Amid the devastating second wave, the federal agency has been told to step up its drive against entities indulging in activities such as hoarding and overcharging of essential life-saving drugs, including Remdesevir injections. Issuing fake RT-PCR certificates and charging exorbitant prices for hospital beds/ICU/ventilator, too, would be treated as an offence under the anti-money laundering provisions.

Following this, the agency has been asked to consider cases of crime related to Covid-19 as a predicate offence under the Prevention of Money Laundering Act (PMLA).
 
During May and June, bulk promotions claiming availability of Covid treatment duped people on the pretext of providing oxygen cylinder and ambulance service at a premium cost. Officials said that during the probe, they witnessed the worst form of Covid-related crimes commi­tted by unscrupulous elements during the second wave. They turned disaster into an opportunity, resulting in unprecedented misery to human life. Incidents of exploitation, cheating and extortion of varied kinds were also reported.
 
The enforcement agency is learnt to have submitted its initial status report to the central government on the matter.
 
State police have made hundreds of arrests in such frauds. Delhi police alone registered more than 400 cases in the matter and arrested over 100 people.
 
Sources said the agency has prepared a multi-fold strategy ahead of the third wave as it believes that such elements would resurface.