Rs 14.6 cr swindled from AP corporations by accused involved in Telugu Akademi fraud

Police said that the accused in the Hyderabad Telugu Akademi fraud are also connected to the Andhra Pradesh cases as per preliminary investigation.
Handcuffs being put on a person's hands
Handcuffs being put on a person's hands
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An amount of Rs 14.6 crore has been swindled from two state corporations in Andhra Pradesh, Vijayawada police revealed on Saturday, October 16. Preliminary investigation revealed that the accused involved in the more than Rs 60 crore Hyderabad Telugu Akademi fraud may also be involved in these cases, police said. An amount of Rs 5 crore belonging to the Andhra Pradesh Co-operative Oil Seeds Growers Federation Ltd and Rs 9.6 crore belonging to the Andhra Pradesh State Warehousing Corporation were diverted from fixed deposits belonging to these corporations and misused, police said.

The amount was diverted from the Oil Seeds Growers Federation’s fixed deposits from Saptagiri Grameena Bank in Veerapanenigudem under Atkuru police station limits, and the Warehousing Corporation’s account from the Indian Overseas Bank Bhavanipuram branch in Vijayawada. Based on complaints from the managers of both organisations, cases have been registered and investigation is ongoing, Vijayawada police said. The funds were swindled by creating fake documents, forging employees’ signatures, and diverting the funds to different bank accounts, police said.

A full-scale investigation has been initiated into the two cases, and preliminary information indicated that some of the persons arrested in connection with the Telugu Akademi fraud case earlier this month are related to these two cases too, Vijayawada police revealed. According to reports, the Hyderabad Central Crime Station police have arrested 13 persons so far in the Telugu Akademi case, in which Rs 64.5 crore was swindled from its fixed deposits. The individuals arrested so far include staff of the Akademi and bank officials. The prime accused in the case is reported to be a real estate agent named Chunduri Venkata Koti Sai Kumar. Sai Kumar was reportedly accused of similar offences previously in Andhra Pradesh and Tamil Nadu, with the cases currently being investigated by the CID and CBI.

The Telugu Akademi fraud also involved withdrawing Akademi funds by closing fixed deposits and diverting the funds. Fake accounts were opened in the name of the Telugu Akademi, and the fixed deposits were liquidated by the accused. The Telangana government removed Akademi director Somi Reddy from the post after the fraud came to light, when the director asked officials to examine the bank accounts following Supreme Court directions to divide the Akademi’s funds and assets between Telangana and Andhra Pradesh, which has been pending since bifurcation. 

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