The Hyderabad office of the Enforcement Directorate (ED) arrested Dr. Athuluri Namrath alias Pachipalli Namrath under the provisions of the Prevention of Money Laundering Act (PMLA) 2002 in connection with alleged illegal surrogacy and child trafficking.
According to the Enforcement Directorate, the arrest was made on Thursday during an investigation into the activities carried out on behalf of the Universal Srusthi Fertility and Research Center.
The ED has launched an investigation based on several FIRs registered by the Gopalapuram police station in Hyderabad on allegations of fraud, cheating, criminal conspiracy, illegal surrogacy and child trafficking. The police had earlier arrested Dr Namrath and others during the investigation. She was released on bail on 27 November 2025.
During the PMLA investigation, the ED recorded the statements of Dr. Namratha and her associates in judicial custody and conducted searches in various premises. Officials said documentary evidence was seized from 2014 showing her involvement in extortion. Investigations revealed that she continued the illegal operations even after several cases were registered against her and her medical license was suspended by the authorities.
According to investigators, Dr. Namratha collected large sums of money from childless couples for the promise of providing children through surrogacy. In order to present the process as legitimate, gametes were taken from couples to be implanted into a surrogate mother. Instead, the newborns came from poor and vulnerable parents who were unable to raise a child or were considering terminating the pregnancy.
A network of agents and sub-agents was allegedly involved in identifying and persuading economically vulnerable pregnant women to give up their babies in exchange for money. The ED said Dr Namratha allegedly paid around Rs 3.5 lakh for a girl and Rs 4.5 lakh for a boy. Such deliveries were performed at a hospital in Visakhapatnam after the license of its hospital in Secunderabad was revoked.
Investigators further found that birth reports submitted to city officials were falsified to include the names of the filers as the parents, not the biological parents. The agency said several couples were defrauded in this way, and large sums were collected through checks and cash.
Analysis of bank accounts maintained by Dr. Namrathou revealed that funds obtained from childless couples were then transferred to agents and sub-agents who in turn paid the biological parents of the trafficked infants.
The ED said that after being released on bail, Dr. Namratha was evasive and uncooperative during questioning despite being confronted with evidence relating to alleged proceeds of crime and money laundering.
She was produced before the Nampally MSJ court, which sent her to judicial custody till February 26, 2026. Further investigation is underway.
Published – 13 Feb 2026 20:38 IST