Fake Medical Bills, Shell Companies & Rs 158 Crore: Inside ED's Big Crackdown on Delhi Hospital

The Enforcement Directorate (ED) has attached assets worth Rs 158.37 crore belonging to Delhi-based Rocklands Hospital Ltd as part of a money laundering investigation linked to an alleged financial fraud involving fake invoices, inflated construction costs and shell companies.

According to the agency, the action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA) following allegations that the hospital's promoters diverted company funds through fraudulent financial transactions.

The ED alleged that the promoters siphoned off Rs 76.03 crore by generating fake invoices for medical implants through 71 companies . Investigators claim these entities were used to create fictitious transactions that enabled the diversion of funds while concealing the true nature of the financial dealings.

The agency further alleged that another Rs 82.34 crore was diverted by inflating the construction cost of the hospital using a related company, Somya Constructions . According to the ED, the promoters allegedly routed money through accommodation entry operators and shell entities to disguise the origin of what it described as illicit funds .

As part of the investigation, the ED has issued a provisional attachment order covering assets valued at Rs 158.37 crore . Such attachments are intended to prevent the disposal or transfer of assets that are suspected to have been acquired through proceeds of crime while the investigation is underway.

The money laundering case is based on a January 2020 chargesheet filed by the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs. The SFIO had investigated the alleged financial irregularities involving the hospital's promoters, following which the ED initiated proceedings under the PMLA.

The hospital or its promoters could not be immediately contacted for their response to the allegations. The investigation is continuing, and the allegations made by the ED are yet to be tested in court.