ED Attaches Properties in Surrogacy Racket
Analysis based on 8 articles · First reported Mar 10, 2026 · Last updated Mar 10, 2026
The event highlights regulatory risks in the healthcare sector, particularly for fertility clinics, and could lead to increased scrutiny and stricter enforcement of laws related to surrogacy and child trafficking in India. This could negatively impact the market sentiment for private healthcare providers involved in fertility services, especially those operating without stringent oversight.
The India — Enforcement Directorate has attached 50 immovable properties, valued at approximately Rs 50 crore, belonging to Dr. Pachipalli Namratha and her sons. This action is part of an ongoing investigation into an illegal surrogacy and child trafficking racket operated by Pachipalli Namratha through her clinic, Universal Srusthi Fertility and Research Centre, in India — Hyderabad. Pachipalli Namratha was arrested on February 12 under the Prevention of Money Laundering Act, 2002. The investigation, initiated based on multiple FIRs from India — Gopalapuram Police Station, revealed that Pachipalli Namratha defrauded childless couples by promising babies through surrogacy but instead sourced newborns from poor parents. She forged birth reports and continued the racket since 2014, even after her medical license was suspended. Funds collected from couples were used to pay agents and biological parents, with property payments made in cash from the proceeds of crime.
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