Scandal in Telangana: 7 Dark Truths Behind the Surrogacy Racket

The railway station in Secunderabad, Telangana, buzzes with activity as countless individuals traverse the concourse daily. Amidst the clamor, advertisements in multiple languages—Hindi, Telugu, English, and Bengali—promote various medical services available throughout the city. Billboards outside the station proudly display cheerful couples with babies. Together with Hyderabad, this city has emerged as a vital destination for medical tourism in India.

In August 2024, after thorough research, Sonam Singh and her husband Akshay made their way from Kuharwas village near Jhunjhunu, Rajasthan, to Secunderabad for an in vitro fertilization (IVF) procedure. They rented accommodation close to the station and began their online search for nearby hospitals.

Nearby, they came across the Universal Srushti Fertility Centre, which claimed an impressive 85% success rate for IVF treatments. Eager for results, the couple met with the owner, Pachipala Namratha, also known as Athaluri Namratha, age 64.

A view of the Srushti Fertility Centre in Secunderabad. | Photo Credit: G. Ramakrishna

“Tests indicated we were fit to conceive,” Sonam shared over the phone from Kuharwas. “However, the doctor recommended surrogacy as a safer and more reliable option. She assured us our existing sperm and egg would be used and that all legal documentation would be handled.”

While an IVF cycle typically costs between ₹2 lakh and ₹6 lakh, Namratha informed them that surrogacy would amount to ₹30 lakh. She requested that they transfer half the fee electronically and pay the balance in cash, ostensibly for the surrogate. Trusting her, the couple made their first payment on August 16, 2024. An FIR filed by Akshay claimed Namratha guaranteed them a “healthy child [would be] delivered… after DNA confirmation.”

Nearly a year later, on June 5, Sonam and Akshay received a baby at Lotus Hospital in Visakhapatnam. Their suspicions arose when Namratha’s clinic declined to conduct the DNA test. The couple sought tests at the DNA Forensics Laboratory in Vasant Kunj, Delhi, only to discover that the child was not biologically theirs. On returning to Secunderabad to inquire, Namratha was nowhere to be found.

Sonam and Akshay reported the issue to Gopalpuram police in Secunderabad, leading to an investigation that revealed a baby-selling operation. Namratha was charged under various sections of the Bharatiya Nyaya Sanhita Act, 2023, pertaining to criminal conspiracy, breach of trust, and document forgery, among other offenses. She was also prosecuted under the Surrogacy (Regulation) Act, 2021, concerning prohibitions and penalties regarding surrogacy practices.

Sourcing Surrogates

According to Gopalapuram police, Universal Srushti Fertility Centre is implicated in deceiving at least 15 couples, charging each between ₹20 lakh and ₹30 lakh for surrogate babies that were not genetically theirs. The operation also involved falsified paperwork, as detailed by police findings. The investigation uncovered that the clinic paid commissions to smaller agencies for referring surrogate mothers and women looking for abortions, forged medical documents, and operated without necessary licenses.

The police identified an agent named Dhanasri Santoshi who facilitated a transaction between an Assamese couple and the clinic. The baby meant for the Assamese couple ended up with Sonam and Akshay. Police have since arrested the Assamese couple on charges of selling their child.

“Instead of the agreed ₹15 lakh, the Assamese couple received only ₹90,000 for their baby,” reported a police officer. The child has since been placed in foster care at Shishu Vihar, a childcare center under the Women and Child Welfare Department.

Authorities have noted a concerning trend in how surrogates were recruited. The sealed medical facility in Secunderabad is located near numerous lodges and guesthouses, which were allegedly used to shelter women. A police officer remarked, “Agents approached vulnerable women, especially those seeking abortions, and incentivized them to maintain their pregnancies, claiming they would take the child afterward. These newborns were then misrepresented as being born through surrogacy. This misled many into believing the babies were biologically theirs.” Reports indicate that in at least four documented cases in Telangana, mothers were abandoned entirely post-delivery without any compensation.

Tragically, on November 26, 2024, a surrogate from Odisha died after falling from the ninth floor of a building in Raidurgam, Hyderabad. Following an alleged sexual assault attempt by her host, she attempted to escape and tragically fell. She had reportedly been brought to the city via intermediaries for surrogacy for ₹10 lakh, according to police accounts.

Donors in Queue

As investigations unfolded, police raided a facility named Indian Sperm Tech near Secunderabad East Metro Station, just 400 meters from the fertility clinic. They discovered 17 sperm donors and 11 egg donors waiting there.

“Women donors were brought from Delhi, while men came from Andhra Pradesh and other parts of Telangana. The sperm donors, mainly aged 22 to 30, received ₹1,000-₹1,500 per sample,” shared a police officer involved in the operation.

L. Shiva was among those arrested during the raid. A 35-year-old from Vizianagaram, he was involved in connecting donors to the hospital. Another suspect seized hailed from Indore, Madhya Pradesh. One of the egg donors caught in the operation was a 30-year-old from Baksa, Assam.

Indian Sperm Tech, allegedly headquartered in Ahmedabad, had been running its sperm collection unit in Secunderabad without a valid license. “It is supposed to be a diagnostic center,” stated an officer from the District Medical and Health Officer’s office. “They collect sperm samples, freeze them, and ship them to Ahmedabad. The processed samples are then returned with reports and dispersed to clinics across Telangana, Andhra Pradesh, and Chhattisgarh. This operation has run for two years without proper registration.”

Previous Troubles

On a typical bustling weekday afternoon on St. John’s Road in Secunderabad, just a turn away lies a quiet, narrow alleyway, often overlooked. Here, two policemen stand as silent witnesses to what the North Zone police uncovered.

The building housing Namratha’s clinic has been sealed, and the clinic is now closed following an investigation that unveiled the baby-selling scheme masquerading as a fertility clinic. “Only the first two floors were occupied, while the rest sat empty,” noted a constable. The clinic was equipped with necessary childcare and fertility treatment tools.

Rajesh Ravi, a long-time resident, expressed shock at the developments. “You think you know your neighborhood after living there for over a decade. I had no idea anything suspicious was occurring. The biggest inconvenience was when too many patients arrived, causing traffic congestion.”

Rajesh recalled a police incident at the same location about ten years ago. “Back then, social media was not as fast as it is now, so people didn’t talk about it openly,” he stated.

“We were aware of what was happening here,” remarked Manu, a lawyer living nearby. The clinic, previously known as Rushi Test Tube Bab Cent, had been shut down multiple times. “This time feels serious, and I believe Namratha will be prevented from continuing her business,” he added.

The main accused in the Srushti Fertility Centre case, Pachipala Namratha, being interrogated by police. | Photo Credit: G. Ramakrishna

The Telangana Medical Council revealed that Namratha faced scrutiny in a surrogacy case back in 2016. A couple from the U.S. learned that their surrogate-born child had no biological ties to them. “After court proceedings, we suspended her license for five years, prohibiting her from conducting surrogacy,” stated Dr. G Srinivas, Vice-Chairman of the Council.

Despite her suspension, upon its conclusion, Namratha attempted to reinstate her license. “We denied her request as she was still embroiled in a court case,” added Dr. Srinivas.

Stricter Regulations

With increasing interest in surrogacy among couples facing infertility, Indian laws have tightened to ensure ethical practices free from exploitation. The Surrogacy (Regulation) Act, 2021, has established clearer guidelines for what was once a murky area of law.

The Act permits only altruistic surrogacy in India, banning monetary compensation for surrogates apart from medical expenses and insurance coverage. Commercial surrogacy is strictly prohibited and carries severe penalties.

All surrogacy procedures must occur in licensed clinics, complying with specific medical and ethical standards as mandated by law. Violating these rules, including employing brokers or operating without registration, can lead to up to 10 years in prison and fines of up to ₹10 lakh.

Fertility specialists assert that the Assisted Reproductive Technology (ART) Regulation Act and the Surrogacy (Regulation) Act have brought necessary order to a previously lax system.

Dr. Preethi Dayal, who operates the Preethi Fertility Centre in Jangaon district, noted that prior to the ART law’s enforcement in January 2023, many centers functioned without oversight. “Anyone could bring a random donor, collect samples, and manage documentation. Now, strict protocols are in place. Every donor must come from a registered ART bank, which maintains Aadhaar-linked records, though identities remain confidential,” she explained. Comprehensive donor screenings, including genetic testing, are now mandatory.

Dr. Preethi added that confidentiality is paramount; patients are unaware of donor identities, and legally, the child belongs to the intended parents. “This is the framework we follow,” she stated.

To mitigate human error risks, many IVF clinics are now employing the RI Witness system for sample tracking. Each patient receives a barcode-linked card that, when scanned, alerts the facility to any inconsistencies before processing. “While larger hospitals have adopted this, smaller clinics may lack the resources to comply,” she cautioned.

Additional reporting by Naveen Kumar

Names have been changed to protect privacy.