Hyderabad, October 6 (IANS): Hyderabad police on Wednesday announced the arrest of six other people in connection with the Telugu Akademi fixed deposit fraud case, Rs 64.5 crore.
With this, the number of people arrested in this case rose to 10. Four defendants were arrested two days ago.
Among those arrested on Wednesday is the mastermind of the fraud, Chunduri Venkata Koti Sai Kumar.
The Detective Department’s Central Crime Station (CCS) made the arrests while investigating three cases recorded on the basis of complaints filed by Telugu Akademi, Union Bank of India and Canara Bank.
Hyderabad Police Commissioner Anjani Kumar and Co-Commissioner Avinash Mohanty announced the arrests at a press conference here.
The case concerns a fraudulent withdrawal of term deposits in the amount of Rs 64.5 crore with two public sector banks.
The fraud was committed by a group of bank agents in collusion with some bank officials and an employee of Telugu Akademi.
Among those arrested on Wednesday were Sagoori Ramesh, administrative manager and account manager at Telugu Akademi; Mr. Sadhana, Branch Manager of Canara Bank in Chandanagar; Sai Kumar, a businessman from Hyderabad; his associates N. Venkata Raman, Venkateshwar Rao alias Dr Venkat and Somasekhar.
Police previously arrested Sheikh Mastan Vali, managing director of the Karwan branch of the Union Bank of India; BVVN Satyanarayana Rao, Chairman and CEO, AP Mercantile Cooperative Credit Society Ltd; Vedula Padmavathi, Director (Operations), AP Mercantile Cooperative Credit Society, which is Satyanarayana’s sister; and Sayyad Mohiuddin, Relationship Manager, AP Mercantile Cooperative Credit Society.
Most of the defendants are from neighboring Andhra Pradesh and work in real estate. Police are investigating the role of 8-9 other suspects in the case.
Investigations revealed that a total of 43 FDs were fraudulently removed between December 2020 and September 2021.
Police commissioner said 26 FD were removed from Karwan branch of Union Bank of India, 11 from Santosh Nagar branch of Union Bank of India and 6 from Chandanagar branch of Canara Bank .
According to police, Ramesh aka Ravi, an administrative officer, was the main link with the criminal gang involved.
Police say Sai Kumar is the mastermind of the fraud. According to his own confession, Sai Kumar has been involved in three similar cases in the past.
The previous cases concern the AP Minorities Welfare Society in 2012 and the AP Housing Board scam of 2015, which is pending trial. The third case concerns the North coal deposit in Chennai.
The FDs withdrawn from the three branches of the two public sector banks were transferred with false documents to the Telugu Akademi account created by the accused in the AP Mercantile Cooperative Credit Society. The money was then transferred to the company’s account at Agrasen Bank, branch of Siddiamber Bazar.
The defendants withdrew the money from Agrasen Bank and divided among them according to their role, with the bulk going to Sai Kumar.
They used a large portion of the money to provide loans, acquire property and for business transactions.
The co-commissioner of police said some accounts had been frozen and part of the money had been recovered from the possession of the accused, but it was a very small amount, around Rs 15- 17 lakh.
Mohanty said police will seek pre-trial detention to gather more information on where he spent the money.
The police commissioner said that according to the rules, the entire responsibility lies with the banks to compensate the money to their owner, which in this case is the Telangana government.