The ED initiated its probe on the basis of multiple FIRs registered by Gopalapuram police for fraud, cheating, criminal conspiracy, illegal surrogacy and child trafficking. Investigators alleged that Dr Namratha orchestrated a surrogacy racket through her clinic with the help of employees and agents, offering childless couples babies under the guise of legitimate surrogacy.

The ED has earlier said that Dr Namratha, who has been practising in the fertility field for over a decade, had been collecting large sums in cash and investing them in immovable properties. In mid-2025, she was arrested and accused of operating an extensive illegal surrogacy and child-trafficking racket through her clinics in Telangana and Andhra Pradesh.