The Enforcement Directorate has attached immovable properties worth ₹158.37 crore in a money laundering probe against Rockland Hospitals. The investigation reveals a sophisticated scheme involving fake medical implant invoices and inflated construction costs.

Key Takeaways

  • ED attached immovable assets worth ₹158.37 crore linked to Rockland Hospitals.
  • The fraud involved ₹76.03 crore in fake implant invoices via 71 companies.
  • Construction costs were allegedly inflated by ₹82.34 crore through Somya Constructions.
  • The probe stems from a 2020 complaint filed by the SFIO.

New Delhi: In a major crackdown on financial irregularities within the healthcare sector, the Enforcement Directorate (ED) has provisionally attached immovable properties valued at approximately ₹158.37 crore. This action is part of an ongoing money laundering investigation into Rockland Hospitals Limited and its promoters.

The Modus Operandi: How the Money Was Siphoned

According to the agency, the promoters utilized a dual-pronged strategy to siphon off company funds. The first component involved the generation of fraudulent invoices for medical implants, totaling ₹76.03 crore, spread across 71 different companies. The second component involved the systematic inflation of hospital construction costs by ₹82.34 crore through a related entity, Somya Constructions Private Limited.

Origins of the Investigation

The ED's involvement follows a formal complaint lodged on January 31, 2020, by the Serious Fraud Investigation Office (SFIO) before the Special Court (Companies Act) in Dwarka, New Delhi. The SFIO had initially flagged massive financial discrepancies within the hospital's operations, which subsequently triggered a parallel probe by the ED under the Prevention of Money Laundering Act (PMLA).

Shell Companies and Money Laundering

The investigation further alleges that the accused attempted to disguise the illicit origin of these funds by employing accommodation entry operators and various shell entities. By routing money through these layers, the perpetrators sought to project 'proceeds of crime' as untainted wealth. While Rockland Hospitals has previously contested these allegations in various legal forums, the ED's latest attachment marks a significant escalation in the legal battle.