Hyderabad doctors accuse hospital ex-MD of ₹38-crore fraud
HYDERABAD: A group of senior specialist doctors has lodged a complaint with the Central Crime Station alleging they were cheated of more than ₹38 crore by the former managing director of a private hospital in Banjara Hills, where they were persuaded to invest with promises of high returns.
Assured returns, alleged diversion of funds
According to the complaint filed by plastic surgeon Dr Chokka Rajesh Vasu on Tuesday, 14 doctors, including cardiologists and urologists, invested in the hospital venture floated by Dr Venugopal Kakuntla, but the assured returns never materialised. The complainants alleged that Dr Kakuntla and his brother Hemanth Kakuntla diverted hospital funds to purchase real estate and gold, and resorted to over-billing Covid-19 patients.
Based on the complaint, CCS police registered a case under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant, banker, merchant or agent), 477-A (falsification of accounts) read with 120B (criminal conspiracy) of the Indian Penal Code against Dr Kakuntla, his brother and others, and launched an investigation.
Equity promises and alleged manipulation
The doctors alleged that during 2014–15, when Dr Kakuntla was the hospital’s managing director, he and his brother persuaded colleagues to buy equity, projecting the hospital as a transparent, doctor-controlled institution. Under the proposal, promoter-directors were to retain 51% of ₹2.2 crore shares priced at ₹30 each, while 49% was to be allotted to investing doctors at ₹50 per share.
The complainants said they collectively invested over ₹38 crore Dr Vasu (₹40 lakh), Dr K V R Prasad (₹10 crore), Dr Gangadhar and a family member (₹17 crore) and Dr Ravi Palwai (₹11 crore). They alleged that about ₹100 crore was raised from other doctors as well.
However, after operations began in 2015, the brothers allegedly retained most of the equity and declared annual losses of ₹10–₹20 crore despite healthy occupancy levels. Patient payments were allegedly routed to a jewellery outlet near the hospital, owned by a relative, to suppress revenue.
Covid billing allegations
The complaint further alleged that during the Covid-19 surge, bills of ₹10–₹20 lakh were raised per patient, though hospital records reflected much lower amounts. Families seeking receipts were allegedly threatened and forced to leave the premises.
The doctors also accused Dr Kakuntla of purchasing five lakh shares from Dr Prasad using a ₹1 crore cheque drawn from the hospital account, later reclassifying it as a “professional advance” to conceal the transaction.
“The investigation is at a preliminary stage. We are verifying the allegations and available evidence. Based on the findings, appropriate legal action will be initiated,” a CCS official said.
