HYDERABAD: The Hyderabad Central Crime Station (CCS) police apprehended three persons in relation to the Rs 43 crore fraud case reported by the Telugu Akademi on Friday.
The police arrested B.V.V.N. Satyanarayana Rao, chairman and managing director of AP Mercantile Cooperative Credit Society Limited, Vedula Padmavathi, manager of operations, and Sayyad Mohiuddin, relationship manager.
A case was registered based on the complaint lodged by the director of Telugu Akademi, Himayatnagar, regarding withdrawal of '43 crore by closing fixed deposits (FDs). It was revealed during investigation that the society had received fixed deposits amounting to Rs 60 crore from the bank.
"The AP Mercantile Co-operative Credit Society opened fake accounts in the name of Telugu Akademi by using fake IDs. The accused persons are involved in similar offences in other two cases in CCS, Hyderabad," said the police.
According to sources, misappropriation of fixed deposits has been reported at 53 different branches of Union Bank of India. Fixed deposits in Karwan, Santoshnagar and other branches totalling '63 crore were transferred to an individual account. The same manager was said to be working at the time of the transfer of funds and is reportedly a key accused in the case.
Police officials are investigating the role of insiders from the Telugu Akademi who allegedly colluded with the manager in the scam. Officials of the Telugu Akademi filed three complaints with the CCS police, who are investigating the incident.
Meanwhile, the state government ordered an inquiry into the case after the reports of misappropriation of funds in Telugu Akademi surfaced. Sources said the department of higher education claimed that it was necessary to conduct an inquiry simultaneously to bring out the facts.
Accordingly, it has been decided to constitute a committee to inquire into the matter. Intermediate education commissioner Omer Jaleel will head the committee which will have representatives of the Board of Intermediate Education and Commissioner of Collegiate Education as its members. The committee had been directed to inquire into the matter and submit a detailed report within a week from October 2.
Telugu Akademi should fully investigate the misappropriation of funds and take stern action against the corrupt officials, said ABVP state secretary Praveen Reddy. "Telugu Akademi has been operating successfully for decades," said Praveen Reddy, urging the government to take strict action against the culprits.
