ED Arrests Doctor For Allegedly Running Illegal Surrogacy And Child Trafficking Racket In Hyderabad

The Directorate of Enforcement (ED), Hyderabad Zonal Office, has arrested Dr. Athuluri Namratha alias Pachipalli Namratha on February 12, 2026 under the Prevention of Money Laundering Act, 2002 in connection with an alleged illegal surrogacy and child trafficking racket operated through Universal Srusthi Fertility & Research Centre.

The money laundering probe was initiated on the basis of multiple FIRs registered by Hyderabad Police alleging offences of fraud, cheating, criminal conspiracy, illegal surrogacy and child trafficking. According to the ED, Dr. Namratha and her associates allegedly promised childless couples babies through purported surrogacy procedures, while in reality sourcing newborns from poor and vulnerable women who were induced with money to give up their children after birth.

Money Trail, Forged Records And Continued Operations Despite License Suspension

The ED’s investigation revealed that while gametes of the couples were collected to project the process as legitimate, the babies were procured through a network of agents and sub-agents. Dr. Namratha allegedly paid around ₹3.5 lakh for female children and ₹4.5 lakh for male children, with deliveries conducted at her hospital in Visakhapatnam after her Secunderabad clinic’s licence was revoked. Birth records were allegedly forged to reflect the commissioning couples as biological parents.

Financial analysis showed that large sums collected from couples through cash and banking channels were routed to agents and further to biological parents, establishing the laundering of proceeds of crime. The ED stated that despite being confronted with documentary evidence, Dr. Namratha remained evasive and non-cooperative during questioning, leading to her arrest. She has been remanded to judicial custody till February 26, 2026. Further investigation is ongoing.