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Less than a year after they were arrested in one of the biggest alleged baby-trafficking and IVF fraud cases in the Telugu states, three Andhra Pradesh government doctors have been reinstated into service.
The Andhra Pradesh government has revoked the suspension of Dr Vasupalli Ravi, Dr Pulumuru Usha Devi and Dr Arimilli Vidyullatha, all of whom were arrested in July 2025 in connection with the Srushti Fertility Centres scam, allegedly masterminded by Dr Namratha.
The three doctors were among 25 people arrested after investigators uncovered what they described as a large-scale baby-trafficking and extortion racket operating through Dr Namratha's chain of Universal Srushti Fertility Centres.
Dr Arimilli Vidyullatha and Dr Pulumuru Usha Devi were arrested on August 5, 2025. A day later, Dr Vasupalli Ravi was arrested. They were booked under relevant sections of the Surrogacy (Regulation) Act and the Juvenile Justice (Care and Protection of Children) Act. They were subsequently released on bail.
Addressing the media in July 2025, Hyderabad’s North Zone Deputy Commissioner of Police (DCP) Rashmi Perumal said that couples seeking in vitro fertilisation (IVF) were persuaded to opt for surrogacy packages costing between Rs 30 lakh and Rs 44 lakh with the promise of a ‘guaranteed baby.’
However, instead of arranging legal medical surrogacy, the network allegedly trafficked babies from vulnerable families. The network is even alleged to have sold infants stolen from hospitals.
The investigation has revealed that Dr Namratha established multiple fertility clinics in Secunderabad, Kondapur, Visakhapatnam, Vijayawada, Nellore, Rajahmundry, Bhubaneswar, and Kolkata.
According to the 2021 Surrogacy (Regulation) Act, commercial surrogacy is illegal. The Act only permits ‘altruistic’ surrogacy. By law, the surrogate’s sole motive must be an intention to help the couple and not financial gain. Only the surrogate’s medical expenses are to be paid for. Further, the surrogate must be a close relative of the intended couple.
Dr Vasupalli Ravi was the Head of Anaesthesiology at Andhra Medical College (AMC). Dr Pulumuru Usha Devi was an Associate Professor of Obstetrics and Gynaecology at the same institution and Dr Arimilli Vidyullatha was a pediatrician at Srikakulam Government Medical College.
In May 2026, the Andhra government revoked their suspension. A government order issued by the Health, Medical and Family Welfare Department said the decision was taken under clause (c), sub-rule (5) of rule 8 of the Andhra Pradesh Civil Services (Classification, Control and Appeal) Rules, 1991.
While the current postings of Dr Usha Devi and Dr Vidyullatha could not be independently verified by TNM, Dr Ravi has been posted as Professor of Anaesthesiology at the Kidney Research Centre in Srikakulam district’s Palasa.
However, Andhra Government Doctors Association president Dr D Jayadhir Babu said the reinstatement followed established service rules. "In such cases, a departmental review committee examines the matter and makes recommendations on the further course of action. The reinstatement is in accordance with the rules," he told TNM.
On July 1, Srikakulam Government Medical College (GMC) Principal Dr S Appala Naidu and AMC Principal Dr Sandhya were appointed by the state as the inquiring authority and presenting officer.
Dr Namratha remains in custody. The Hyderabad Special Investigation Team (SIT) and the Enforcement Directorate have been investigating others involved in the surrogacy racket.
