The Hyderabad surrogacy racket investigation has intensified after the Enforcement Directorate attached properties worth ₹29.76 crore linked to an alleged illegal surrogacy and child trafficking network. Authorities claim the operation was run through a fertility clinic that allegedly supplied newborn babies to couples under the cover of medical surrogacy procedures. The probe is being conducted under the Prevention of Money Laundering Act following multiple criminal complaints. Investigators suspect vulnerable families were persuaded to give up newborns for money while couples were led to believe the babies were born through lawful surrogacy arrangements. Financial transactions and assets connected to the network are now under scrutiny.

Hyderabad Surrogacy Racket: ED Attaches ₹29.76 Crore Assets in Illegal Surrogacy and Child Trafficking Case

The Hyderabad illegal surrogacy racket investigation intensified after the Enforcement Directorate attached ₹29.76 crore worth properties linked to a fertility clinic. Authorities allege a child trafficking network supplying babies to couples under fake surrogacy procedures since 2014.

The Hyderabad illegal surrogacy racket has come under intense scrutiny after the Enforcement Directorate provisionally attached properties worth ₹29.76 crore linked to an alleged child trafficking network.

The action forms part of an ongoing investigation under the Prevention of Money Laundering Act, 2002, targeting an alleged illegal surrogacy operation linked to a fertility clinic in Hyderabad.

According to the Enforcement Directorate, the racket was allegedly run by Dr Pachipalli Namratha, also known as Athluri Namratha, through the Universal Srusthi Fertility and Research Centre.

Investigators believe the network operated for several years and allegedly supplied newborn babies to couples under the cover of legitimate medical surrogacy procedures.

Authorities say the case raises serious concerns about illegal surrogacy practices, child trafficking networks, and financial exploitation of vulnerable women within India’s fertility industry.

The attached assets include land parcels, residential apartments, and a hospital registered in the name of Dr Namratha and her sons.

Although the provisional attachment is valued at ₹29.76 crore, enforcement officials estimate the current market value of the seized properties may exceed ₹50 crore.

The financial investigation is aimed at tracing the proceeds of crime generated through the alleged trafficking and illegal surrogacy operations.

ED Investigation into Hyderabad Illegal Surrogacy and Child Trafficking Network

The Enforcement Directorate investigation into the Hyderabad surrogacy racket began after several criminal complaints were registered with the Gopalapuram Police Station.

The First Information Reports alleged offences including fraud, cheating, criminal conspiracy, illegal surrogacy practices, and organised child trafficking.

Investigators suspect that the fertility clinic operated a structured network that connected agents, vulnerable families, and prospective parents seeking children.

According to officials, couples approaching the clinic were promised that a surrogate mother would carry a child using legitimate assisted reproductive technology procedures.

As part of this process, biological samples from the couples were collected, creating the impression that the pregnancy was medically supervised through authorised fertility treatment.

However, investigators now allege that the babies eventually handed over to the couples were not born through surrogacy arrangements but sourced from economically distressed families.

The investigation suggests that agents and intermediaries were tasked with identifying pregnant women from financially vulnerable backgrounds.

These women were allegedly persuaded with financial incentives to give up their newborn babies soon after delivery.

Authorities claim that payments were made to the biological families while the infants were then transferred to couples who believed they were part of a lawful surrogacy programme.

Investigators say the scheme operated through a network of agents and sub agents who facilitated both the recruitment of pregnant women and the transfer of infants.

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Payments, Forged Birth Records and Expansion of the Surrogacy Racket

Investigators allege that the illegal network followed a structured pricing system for infants supplied to couples.

According to the Enforcement Directorate, around ₹3.5 lakh was allegedly paid for a female child while a male child could fetch approximately ₹4.5 lakh.

Authorities say the racket generated significant profits by charging couples much higher amounts for the supposed surrogacy services.

To make the arrangement appear legitimate, investigators claim birth records submitted to municipal authorities were manipulated or forged.

The names of the commissioning couples were allegedly recorded as parents in official documents instead of the biological mothers who delivered the babies.

Investigators say such documentation practices helped conceal the true origin of the children and allowed the network to operate without immediate detection.

Authorities also discovered that several deliveries linked to the racket were conducted at a hospital in Visakhapatnam.

This reportedly occurred after the licence of the fertility clinic previously operated by Dr Namratha in Secunderabad was revoked by regulatory authorities.

Despite the cancellation of the clinic’s licence and the registration of criminal complaints, investigators allege the network continued functioning.

Officials believe the operation may have been active since at least 2014, indicating a long running system involving multiple participants.

Money Laundering Probe Reveals Properties Purchased with Alleged Proceeds of Crime

Financial investigators examining bank transactions linked to the accused found evidence suggesting that large sums were collected from couples through bank transfers and cash payments.

According to the Enforcement Directorate, the money received from prospective parents was allegedly distributed across the network.

Agents and sub agents reportedly received commission payments for identifying pregnant women and coordinating deliveries.

Investigators believe portions of the funds were also paid to biological families who agreed to surrender their newborn children.

The financial trail uncovered during the probe indicates that several properties were purchased using the suspected proceeds of crime.

Officials identified land, residential properties, and hospital assets registered in the names of Dr Namratha and her sons.

Authorities say many of these purchases involved significant cash transactions, which investigators believe were linked to the illegal surrogacy business.

As part of the money laundering investigation, the Enforcement Directorate arrested Dr Namratha on February 12, 2026.

She is currently in judicial custody while investigators continue to analyse financial records and digital evidence linked to the case.

A preliminary assessment by the Sprouts News Special Investigation Team suggests the case highlights serious regulatory gaps in India’s fertility and surrogacy ecosystem.

Policy experts say the investigation could influence future enforcement of the Surrogacy Regulation Act and stricter monitoring of fertility clinics across the country.

Authorities have indicated that further arrests and asset seizures may follow as the probe continues to uncover the full scale of the alleged child trafficking and illegal surrogacy network.

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