Hyderabad: The Cyberabad economics offence wing (EOW) police on Friday arrested Gujjuri Ashok Rao and Uday Kumar Chava, president and general secretary of Software Engineers Employees Housing and Welfare Association (SEEHWA), for cheating their co-members by mortgaging the association’s land to Ashok Rao illegally, without consent of other members. The land said to be worth Rs 75 crore was allegedly mortgated for Rs 1.5 crore.
EOW DCP K. Prasad said that a group of software employees had formed the society with its registered office at Club House, Indus Crest, Osmannagar, Ramachandrapuram mandal of Sangareddy district.
"The members after the formation of SEEHWA have purchased six acres of the land — three acres of land purchased on January 19, 2007 and another three acres on February 15, 2007. They purchased another five acres of land adjacent to the association’s existing land in which 240 apartments and 15 villas were constructed and handed over to members in 2016,” Prasad said.
The remaining 345 members retained their share in the six acres of land. The society last conducted an election in 2018 and since then no poll or general body meeting was conducted, the police said.
The DCP said on April 16, 2024, one of the members took an encumbrance certificate (EC) of the land and noticed that acting secretary Uday Kumar Chava allegedly in connivance with acting president Gujjuri Ashok Rao mortgaged three acres of land on August 21, 2019.
"As per the bylaws of the society, the mortgage was required to be attested by a general body meeting that has not been conducted,” DCP Prasad explained. Therefore, the transaction should be called as an illegal related party transaction using the SEEHWA office, he said.
“The rest of the members after coming to know (of the transaction) expressed their deep concern over mortgaging a property that is worth about Rs 75 crore for Rs 1.5 crore. The accused, in their capacity as president and secretary to the association, executed a mortgage deed in their favour and cheated the rest of other members," the DCP said.
