Surrogacy Scandal: Racket Uncovered in Hyderabad Suburb

In a shocking revelation, Hyderabad’s North Zone Police have dismantled a sophisticated illegal surrogacy and baby-selling operation that exploited vulnerable families and defied medical regulations. The scandal, centered at Universal Srushti Fertility Centre in Secunderabad’s Regimental Bazaar, has exposed deep ethical breaches in the fertility industry, raising urgent questions about oversight and accountability. Recent reports indicate that the racket, led by a prominent fertility doctor, deceived childless couples with promises of biological children while trafficking newborns for profit.

The operation came to light in July 2025, following a complaint from a couple who sought in-vitro fertilization (IVF) services at the clinic in August 2024. The couple, originally from Rajasthan but residing in Secunderabad, paid approximately ₹35 lakh for what they believed was a legitimate surrogacy procedure. They were assured that their gametes would be used, and the clinic provided updates on the surrogate’s pregnancy, culminating in the delivery of a baby boy in June 2025. However, suspicions arose when the couple conducted an independent DNA test, which revealed no biological connection to the child. When confronted, the clinic allegedly issued threats, prompting the couple to approach the Gopalapuram police.

Investigations uncovered a chilling scheme orchestrated by Dr. Athaluri Namratha, a 64-year-old doctor and owner of Universal Srushti Fertility Centres, which operated branches in Hyderabad, Vijayawada, and Visakhapatnam. Authorities arrested ten individuals, including Dr. Namratha, her advocate son Pachipala Jayanth Krishna, and several staff members. Recent reports detail how the clinic, operating without a valid license since its registration was revoked in 2021, charged clients between ₹20 lakh and ₹30 lakh for fraudulent surrogacy services. Instead of facilitating legitimate procedures, the racket allegedly purchased infants from impoverished families for as little as ₹90,000 and sold them to unsuspecting clients as IVF babies, complete with forged birth certificates.

The scheme preyed on vulnerable women, including those seeking abortions, who were coerced into carrying pregnancies to term in exchange for minimal payments. One case involved a couple from Assam, residing in Hyderabad, whose newborn was sold to the Rajasthan couple. The biological parents, paid a nominal sum, were unaware of the child’s fate after delivery in Visakhapatnam. Police raids on the clinic’s branches recovered medical equipment, surrogacy records, and digital devices, exposing a network that spanned Telangana and Andhra Pradesh. Official statements from the Hyderabad police indicate that the clinic also conducted unauthorized procedures, such as sex determination and embryo implantation, violating India’s Assisted Reproductive Technology (Regulation) Act.

This is not the first time Dr. Namratha has faced scrutiny. Reports note prior allegations in 2016 and 2020, including a five-year license suspension by the Telangana Medical Council after an NRI couple reported a similar fraud. Despite these penalties, the clinic continued to operate illegally, exploiting regulatory loopholes and using another doctor’s credentials on its letterheads. The involvement of Dr. Namratha’s son, who allegedly handled financial transactions and intimidated dissatisfied clients, further deepened the operation’s reach.

The scandal has sparked outrage and prompted the Telangana Health Department to issue warnings about unregistered fertility clinics. As of July 2025, only 381 facilities in Telangana are legally approved under the ART & Surrogacy Act. Authorities are now investigating other couples who sought services at Universal Srushti to determine the full scope of the racket. Experts emphasize that commercial surrogacy is banned in India, and any promise of paid surrogacy is illegal, urging the public to verify clinic credentials before seeking treatment.

This case underscores a broader crisis in the regulation of fertility services, where desperation for parenthood meets exploitation. The Hyderabad police, led by Deputy Commissioner Rashmi Perumal, have vowed strict action against those involved in human trafficking and illegal surrogacy. As investigations continue, the scandal serves as a stark reminder of the need for robust oversight to protect vulnerable families and uphold ethical standards in reproductive healthcare.