Surrogacy Scam in Hyderabad Involves NRI Couples

Hyderabad, August 4, 2025 – A shocking surrogacy scam has been uncovered at Universal Srushti Fertility Centre in Hyderabad, with Non-Resident Indian (NRI) couples among the victims defrauded of substantial sums, including ₹25 lakh in some cases, through fake surrogacy procedures. The Hyderabad police, in a multi-city operation, have exposed a sophisticated racket involving medical malpractice, financial extortion, and illegal baby-selling, prompting widespread concern among the Indian diaspora seeking fertility treatments.

The Scam Unveiled

The scandal came to light on July 26, 2025, when a Hyderabad-based couple from Rajasthan lodged a complaint with the Gopalapuram police, alleging that the baby they received through a supposed surrogacy procedure at Universal Srushti Fertility Centre was not biologically theirs. The couple had paid ₹35 lakh for the procedure, only to discover through an independent DNA test that the child had no genetic link to either parent. This revelation triggered a deeper investigation, uncovering a sprawling network of fraud orchestrated by the clinic’s founder, Dr. Athaluri Namratha, also known as Pachipala Namratha, aged 64.

According to Hyderabad North Zone Deputy Commissioner of Police (DCP) S. Rashmi Perumal, the clinic was not conducting legitimate surrogacy or In Vitro Fertilization (IVF) procedures. Instead, it was engaged in a baby-selling operation, purchasing infants from impoverished families for as little as ₹90,000 and passing them off as biologically related to unsuspecting couples. In one case, a two-day-old baby boy was sold to the complainant couple, falsely presented as their biological child, with forged documents including a fake birth certificate.

Modus Operandi and Illegal Operations

The Universal Srushti Fertility Centre, operating branches in Secunderabad, Kondapur (Hyderabad), Vijayawada, and Visakhapatnam, had been running illegally since its medical license was revoked in 2021. Despite this, Dr. Namratha continued to offer fertility services, exploiting vulnerable couples desperate for parenthood. The clinic charged exorbitant fees, ranging from ₹20 lakh to ₹44 lakh, for promised IVF or surrogacy procedures that were either never performed or involved fraudulent practices.

Police investigations revealed that the clinic collaborated with an unlicensed firm, Indian Sperm Tech, to illegally collect and transport sperm and eggs across states, including Gujarat and Madhya Pradesh. Vulnerable women, often seeking abortions, were coerced into continuing their pregnancies in exchange for small payments, with their newborns sold to childless couples. In the case of the Rajasthan couple, the biological parents, identified as Mohammed Ali Adik (38) and Nasreen Begum (25) from Assam, were paid ₹90,000, and the mother was sent to Visakhapatnam for delivery to obscure the transaction.

The clinic’s operations were further shielded by Dr. Namratha’s son, Pachipala Jayanth Krishna (25), a practicing advocate who allegedly managed finances and intimidated clients who questioned the procedures. Other arrested individuals include Dr. Nargula Sadanandam (41), an anesthetist from Gandhi Hospital, clinic manager C. Kalyani Atchayyamma (40), lab technician Gollamandala Chenna Rao (37), and agent Dhanasri Santoshi (38), among others. Seven of the accused have been sent to 14-day judicial remand at Chanchalguda jail, while one suspect is being brought from Visakhapatnam for further questioning.

Impact on NRI Couples

The scam’s transnational reach has particularly affected NRI couples, who often seek fertility treatments in India due to lower costs and perceived expertise. One NRI couple reported being defrauded of ₹25 lakh, while others, including a couple from the US in a prior 2016 case, had similarly discovered that the children they received were not biologically theirs. The emotional and financial toll on these families has been immense, with victims reporting manipulation through aggressive marketing, free consultation drives, and false promises of guaranteed parenthood.

The Gopalapuram police have registered four additional First Information Reports (FIRs) following new complaints, including one from an NRI couple, highlighting the scale of the racket. A couple from Nalgonda district alleged they were cheated of ₹44 lakh, while a Hyderabad-based woman accused Dr. Namratha of administering unnecessary hormone injections under the guise of fertility treatment, further extorting money through a network of staff members.

History of Malpractice

This is not the first time Dr. Namratha has faced scrutiny. In 2016, the Telangana Medical Council suspended her license for five years after an NRI couple from the US reported that the baby they received through the clinic was not biologically related. In 2020, Visakhapatnam police arrested her and five others for alleged newborn trafficking. Over 10 cases have been registered against her and her clinics across Hyderabad, Visakhapatnam, and Guntur, indicating a long-standing pattern of illegal activities. Despite these setbacks, Dr. Namratha continued to operate, allegedly using another doctor’s credentials and unlicensed equipment.

Legal Violations and Ongoing Investigation

The accused face charges under multiple sections of the Bharatiya Nyaya Sanhita (BNS), including criminal conspiracy (Section 61), criminal breach of trust (Section 316), forgery (Sections 335, 336, and 340), and violations of the Surrogacy (Regulation) Act, 2021, which bans commercial surrogacy in India and permits only altruistic surrogacy. The police have seized unlicensed medical equipment, stored embryos, and forged documents during raids on the clinic’s branches, confirming widespread regulatory violations.

The Telangana Human Rights Commission has taken suo motu cognizance of the case, issuing notices to the State Health, Medical, and Family Welfare Department for a comprehensive report by August 28, 2025. Authorities suspect that the scam may involve nearly 30 children transferred illegally across Andhra Pradesh and Telangana, with a vast network of brokers sourcing infants from impoverished and tribal areas.

Public Advisory and Call for Vigilance

DCP S. Rashmi Perumal has issued a public advisory urging couples to verify the licensing of fertility clinics and avoid those promising commercial surrogacy, which is illegal in India. “The public is strongly advised to remain vigilant and avoid falling prey to fraudulent fertility or surrogacy services,” she said. “Victims are encouraged to come forward. Your cooperation is critical to dismantling such unethical and criminal networks.”

The police are intensifying their probe, examining financial trails and clinic records to uncover potential links to external facilitators and government officials. Further arrests are anticipated as more victims, including NRIs, come forward with evidence of fraud and extortion.

A Call for Reform

The case has sparked renewed debate about the regulation of India’s fertility industry, once a global hub for surrogacy. Gita Aravamudan, author of Baby Makers: The Story of Indian Surrogacy, told The News Minute that the 2021 Surrogacy (Regulation) Act, while intended to curb exploitation, has failed to address root issues, allowing illegal clinics to thrive by exploiting legal loopholes and the emotional vulnerability of childless couples. The Union Ministry of Health and Family Welfare provides a list of approved surrogacy clinics on the National Assisted Reproductive Technologies (ART) and Surrogacy Portal, and authorities urge prospective parents to consult this resource.

As the investigation continues, the Universal Srushti Fertility Centre scandal serves as a stark reminder of the risks faced by NRI and local couples seeking fertility treatments in India. The Hyderabad police remain committed to dismantling this unethical network and ensuring justice for the victims.

For more information or to report similar incidents, contact the Gopalapuram Police Station or the nearest police authority.

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