The State government has suspended Annamayya District Medical and Health Officer (DMHO) Dr. K Lakshminarasaiah for alleged lapses in handling the investigation into the Madanapalle kidney racket.

The suspension followed allegations that the officer submitted a report claiming there was not enough evidence in the case. The government said the report did not reflect the facts and that the officer also failed to bring the complete details to the notice of the High Court.

An order issued on Friday by Principal Secretary, Medical, Health and Family Welfare, G. Veerapandian, said the DMHO had limited its action to cancelling the hospital’s licence instead of taking further administrative steps. A departmental inquiry has been ordered against him.

The racket surfaced in November 2025 at Global Multi-speciality Hospital in Madanapalle. Yamuna (29) from Visakhapatnam allegedly underwent an illegal kidney removal procedure and died on November 10, 2025, after her condition worsened.

Police began looking into the case after an intermediary, Suribabu, approached them, claiming he had not been paid the ₹6 lakh allegedly promised to him. The incident has since raised serious questions over medical oversight and the authorities’ handling of complaints surrounding illegal organ trade.