A 73-year-old man and his family face threats following a massive dispute over a ₹65 lakh investment in a medical institute in Guntur, Andhra Pradesh.

  • Dispute involves ₹65 lakh invested in Amaravati American Institute of Medical Sciences (AAIMS).
  • Complainant alleges shares were never allotted despite the investment.
  • Accused allegedly threatened the victim's family after legal inquiries.

In a distressing incident from Guntur, six individuals have been booked by the local police for allegedly threatening a 73-year-old man and his family. The conflict stems from a long-standing dispute regarding a ₹65 lakh investment in the Amaravati American Institute of Medical Sciences Private Limited (AAIMS).

The case was registered at the Pattabhipuram police station on August 22, following a formal complaint by Patibandla Narayana Swamy of Vijayapuri Colony. The complainant alleges that the investment, made via bank cheques on July 19, 2018, was predicated on the assurance that his son, P. Mohan Rao, would be made a partner in the institution alongside the entity Nava Med Ventures LLC.

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The Core of the Dispute: Investment vs. Loan

According to the legal filings, Mr. Mohan Rao was appointed as a director of AAIMS in December 2020 and subsequently gained authorized signatory powers in February 2026. However, the family alleges that despite the significant capital infusion, the corresponding shares were never allotted to them. When the matter was challenged through a legal notice, the accused reportedly shifted their stance, claiming the ₹65 lakh was a 'loan' rather than an 'investment.'

The situation escalated in August when Mr. Mohan Rao's authorized signatory powers were stripped, and communications were sent regarding his removal from the board. When the family sought clarification, the accused allegedly issued dire threats against them.

Why This Matters

BozokMedia analysis shows that such disputes highlight a critical vulnerability in private medical sector investments, where the ambiguity between equity and debt is often exploited to disenfranchise original investors. This case underscores the need for stringent regulatory oversight in private medical institute partnerships.

The transition from an equity partner to a mere lender is a classic tactic used in corporate disputes to dilute investor control.

Sub-Inspector K. Nagendra confirmed that the police have registered the case under Sections 316(2), 318(4), 351(2) read with 3(5). The investigation is currently underway to verify the authenticity of the claims and the nature of the financial transaction.

Historical Background

Investment disputes in the healthcare sector often involve complex layers of shell companies and multi-entity partnerships. Historically, many such cases in India have seen investors struggle to convert debt-like transactions into actual equity, leading to protracted legal battles in civil and criminal courts.

Did You Know?: In corporate law, the distinction between a 'shareholder' and a 'creditor' is fundamental; one owns part of the company, while the other is merely owed money.

Frequently Asked Questions

Question 1: What was the original reason for the investment?
Answer: The investment was made to secure a partnership and shareholding in the AAIMS medical institute.

Question 2: What is the current status of the police investigation?
Answer: The police have booked the accused under relevant sections and the investigation is ongoing.