The Enforcement Directorate (ED) has attached 50 immovable properties linked to a Hyderabad-based fertility clinic as part of an investigation into an alleged illegal surrogacy and newborn trafficking network. The properties are associated with Dr. Pachipalli Namratha, who ran the Universal Srushti Fertility and Research Centre in Telangana.
According to the ED, the attached assets include flats, residential plots, and hospital property with an official value of about ₹29.76 crore. Authorities estimate the market value of these assets to be close to ₹50 crore. The action was taken under the Prevention of Money Laundering Act (PMLA) during an ongoing financial investigation related to the alleged racket.
The case has drawn attention to the functioning of fertility clinics and the oversight mechanisms governing assisted reproductive technologies in India.
Investigators allege that the fertility centre promised couples children through in vitro fertilisation (IVF) and surrogacy procedures. Couples seeking treatment reportedly paid large sums, sometimes ranging from ₹30 lakh to ₹40 lakh, believing they were undergoing legitimate assisted reproductive services.
However, authorities claim that in several instances the clinic did not conduct genuine surrogacy procedures. Instead, newborns were allegedly sourced from vulnerable women and presented to commissioning couples as babies delivered through surrogate pregnancies.
To maintain the appearance of medical legitimacy, investigators say the clinic collected gametes from couples and prepared medical documentation indicating embryo transfer and surrogacy procedures. In some cases, authorities allege that the infants handed over to couples were not genetically related to them.
According to investigators, the operation involved intermediaries who identified pregnant women from economically disadvantaged backgrounds. These women were reportedly approached and offered financial compensation to give up their newborns after delivery.
Authorities claim that biological mothers were paid several lakhs for the infants, after which the babies were transferred to couples seeking fertility treatment. The infants were then reportedly presented as the result of IVF-based surrogacy.
Investigators also allege that false documentation, including medical records and birth certificates, was prepared to list the commissioning couples as the biological parents. Such records helped present the process as a legitimate medical procedure.
The alleged racket came to light after a couple reportedly conducted an independent DNA test on a child they received through a surrogacy arrangement. The test results indicated that the baby had no genetic connection to them.
Following this discovery, complaints were filed with authorities, prompting police investigations that later involved central enforcement agencies.
Local police initially arrested Dr. Namratha and several others in July 2025, including clinic staff and intermediaries linked to the operation. The ED subsequently launched a parallel investigation into suspected money laundering connected to the case and made further arrests in early 2026.
Officials have stated that multiple individuals connected to the network have been taken into custody as the investigation continues.
India regulates fertility treatments and surrogacy through the Assisted Reproductive Technology (Regulation) Act, 2021 and the Surrogacy (Regulation) Act, 2021. These laws require clinics to obtain registration, maintain transparent medical records, and follow strict guidelines designed to protect intended parents, surrogate mothers, and newborns.
Cases involving alleged illegal surrogacy highlight the risks of inadequate oversight in reproductive healthcare services. They also raise concerns about exploitation of economically vulnerable women and misuse of medical procedures.
As investigations continue, authorities are examining financial records, clinic operations, and the role of intermediaries in the alleged network. The findings may influence future regulatory monitoring of fertility clinics and assisted reproductive services in India.
(Rh/SS)
