The Tamil Nadu government has cancelled the kidney transplant licences of Dhanalakshmi Srinivasan Medical College and Hospital in Perambalur and Cethar Hospital in Tiruchirappalli after an inquiry confirmed their role in an illegal kidney trade network. The action followed an investigation that revealed the hospitals violated the Transplantation of Human Organs and Tissues Act, 1994, by approving transplants between unrelated donors and recipients using forged documents.
The decision came two weeks after both hospitals were suspended on July 24, 2025, following complaints first received by the Directorate of Medical Services earlier in July. The probe exposed a nexus of middlemen who exploited poor individuals in Namakkal district by coercing them to sell their kidneys for money.
The state health department launched a detailed probe in July 2025 under S. Vineeth, Project Director of the Tamil Nadu Health Systems Reform Programme. The investigation examined transplant records, donor files, and bank transactions. It revealed that hospital staff failed to verify the authenticity of donor-recipient relationships and accepted fake identity documents.
Investigators also found that brokers, including individuals identified as Anandan and Stanley Mohan, arranged kidney donors for private hospitals in exchange for commissions. Victims said they were promised large sums but received only partial payments. One donor from Namakkal reported that she was promised ₹10 lakh and received just ₹6.5 lakh after surgery.
After the committee submitted its report, the Tamil Nadu Health and Family Welfare Department ordered the cancellation of transplant licenses for both hospitals on August 11, 2025. The Directorate of Medical and Rural Health Services was instructed to monitor compliance and submit updates to the department.
However, the Madurai Bench of the Madras High Court on November 4, 2025, quashed the order cancelling the transplant licence of Cethar Hospital on procedural grounds, stating that due process was not followed. The court clarified that authorities may initiate fresh proceedings in accordance with law, according to The New Indian Express.
Police registered criminal cases and FIRs against the brokers and other individuals involved in the racket. Public reports confirm FIRs were filed, although specific statutory sections cited in them have not been publicly disclosed.
The state government also announced an audit of all transplant approvals issued since 2022 in hospitals across Tamil Nadu.
The investigation exposed serious lapses in the organ transplant approval process. Hospitals reportedly misused the “emotional connection” clause, which allows unrelated donors to donate organs in exceptional circumstances. Committees often accepted unverified documents without conducting cross-checks, allowing fraudulent cases to pass through easily.
Experts said the scandal highlighted weaknesses in coordination between district and state authorisation committees. The lack of a central verification mechanism enabled brokers to manipulate the system and profit from vulnerable donors.
In September 2025, the Tamil Nadu government introduced a series of reforms to restore transparency and prevent further organ trade violations. The measures were implemented through Government Order (GO Ms No. 396 dated September 8, 2025), which reconstituted state and district authorisation committees and strengthened compliance protocols.
The revised policy now mandates:
Video recording of donor and recipient interviews before approval
HLA matching only at independent laboratories
Electronic audit trail for each transplant case
Mandatory monthly reporting from all transplant hospitals
Increase in transplant application fee from ₹1,000 to ₹2,000 to support regulatory costs
Health Minister Ma Subramanian stated that the government took unbiased and strong action under Chief Minister M. K. Stalin’s directive to ensure transparency and restore trust in Tamil Nadu’s transplant system.
Following the licence cancellations, the Madras High Court asked the health department to submit all documents related to the government’s action against Dhanalakshmi Srinivasan Medical College. The court emphasized the need for due process and ongoing supervision to prevent future misconduct.
Investigators are continuing to examine whether similar irregularities occurred in other hospitals. The police have expanded their search for brokers who acted as intermediaries between donors and medical institutions.
In late August 2025, the Madras High Court (Madurai Bench) constituted a Special Investigation Team (SIT) to conduct a comprehensive probe into the kidney trafficking racket, expressing strong displeasure over the state’s “casual approach” to the grave issue.
The division bench comprising Justices S. M. Subramaniam and G. Arul Murugan ordered the SIT to be led by Inspector General of Police (South Zone) Prem Anand Sinha, with four senior officers from different districts: N. S. Nisha (SP, Nilgiris), N. Silambarasan (SP, Tirunelveli), K. Karthikeyan (SP, Coimbatore), and B. K. Arvind (SP, Madurai).
The court directed the SIT to examine the role of middlemen, verify hospital compliance with the Transplantation of Human Organs and Tissues Act, 1994, and ensure accountability at every level of the regulatory framework. The team was ordered to submit its first progress report by September 24, 2025.
On October 10, 2025, the Supreme Court refused to order a CBI probe and upheld the Madras High Court’s decision to constitute an SIT. The bench headed by Justice J. K. Maheshwari observed that maintaining the independence of the investigation was essential and declined to interfere with the High Court’s order, according to The South First.
In mid-October 2025, the kidney trafficking scandal became a heated political issue. On October 16, 2025, AIADMK legislators arrived at the Tamil Nadu Legislative Assembly wearing badges that read “Save the Kidneys” as a mark of protest against what they called the DMK government’s “irresponsible and delayed” response to the kidney racket.
Opposition leader and former Chief Minister Edappadi K. Palaniswami (EPS) accused the DMK government of showing “double standards” by delaying action in the kidney trafficking case despite the Madras High Court’s intervention. He demanded that the investigation be handed over to the Central Bureau of Investigation (CBI) for impartiality, alleging that the government was protecting hospitals owned by supporters of the ruling party.
Health Minister M. A. Subramanian countered these allegations, stating that the government was committed to a transparent investigation and that the SIT was formed under the direction of the High Court.
Investigators are continuing to examine whether similar irregularities occurred in other hospitals. The police have expanded their search for brokers who acted as intermediaries between donors and medical institutions.
References:
The Hindu. “Tamil Nadu Cancels Transplant Licences of Two Hospitals after Kidney Racket Probe.” The Hindu, August 2025. https://www.thehindu.com/news/national/tamil-nadu/tamil-nadu-cancels-transplant-licences-of-two-hospitals-after-kidney-racket-probe/article68923711.ece
Prince, V. “Madras High Court Forms SIT to Probe Illegal Kidney Transplant Racket in Tamil Nadu.” Courtbook, August 29, 2025. https://courtbook.in/posts/madras-high-court-forms-sit-to-probe-illegal-kidney-transplant-racket-in-tamil-nadu
High Court of Madras. “Search.” Accessed October 18, 2025. https://hcmadras.tn.gov.in/search.php
“Supreme Court Upholds Madras HC Order on Kidney Racket Probe, Rejects Tamil Nadu Government’s Appeal.” The South First, October 11, 2025. https://thesouthfirst.com/tamilnadu/supreme-court-upholds-madras-hc-order-on-kidney-racket-probe-rejects-tamil-nadu-governments-appeal/
“AIADMK Raises Kidney Theft Racket in Assembly.” Deccan Chronicle, October 16, 2025. https://www.deccanchronicle.com/southern-states/tamil-nadu/aiadmk-raises-kidney-theft-racket-in-assembly-1910654
“Illegal Organ Trade: Tamil Nadu Govt Cancels Transplant Licences of 2 Hospitals.” The Times of India, August 11, 2025. https://timesofindia.indiatimes.com/city/chennai/illegal-organ-trade-govt-cancels-transplant-licences-of-two-hospitals/articleshow/123223071.cms
“Tamil Nadu Tightens All Organ Transplant Rules.” The Times of India, September 2025. https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-tightens-all-organ-transplant-rules/articleshow/123815483.cms
“TN Govt Cancels Licences of Two Private Hospitals over Illegal Kidney Transplants.” The News Minute, August 2025. https://www.thenewsminute.com/tamil-nadu/tn-govt-cancels-licences-of-two-private-hospitals-over-illegal-kidney-transplants
Edited by M Subha Maheswari