The Hindu : Andhra Pradesh / Vijayawada News : Three held on charge of defrauding DCCB

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Friday, Dec 24, 2004

Andhra Pradesh

Andhra Pradesh - Vijayawada

Three held on charge of defrauding DCCB

By Our Staff Reporter

VIJAYAWADA, DEC.23. The Vijayawada police on Wednesday took into custody an attender, a staff assistant and a retired branch manager of the Krishna District Cooperative Central Bank (KDCCB), on the charge on of defrauding the bank.

The Krishna District Collector, K. Prabhakara Reddy, and the Commissioner of Police, Umesh Sharraf, gave details of the case to newspersons here on Thursday. The police arrested, M. Seshagiri Rao, 54, attender, Central Office, KDCCB, Machilipatnam, Koganti Ranga Rao, 56, staff assistant, KDCCB regional office, Vijayawada, and S. Murali Krishna, retired branch manager, KDCCB's Pedana branch, and recovered Rs.4.77 lakhs from them.

The Collector said that Seshagiri Rao was charged with manufacturing, with the help of Murali Krishna, an advice for Rs. 5 lakhs from the Mudinepalli branch of KDCCB in the name of Ranga Rao working at the regional office in Vijayawada six months ago. To avoid the physical shifting of huge amounts of cash, branches usually exchange `advices' amongst themselves. An advice was created at Mudinepalli branch without any cash to back it.

Money shared

Seshagiri Rao produced the advice at the regional office on June 30 and Rs. 5 lakhs was credited from general cash into the personal account of Ranga Rao. The money was withdrawn the next day and shared. The General Manager of KDCC Bank was on leave when the alleged fraud came to light. The Regional Manager informed the District Collector, who is the Chairman of the cooperative central bank, about it.

Thinking that there was some mistake, some time was given to those involved to return the money. "Though it is not proper, we waited for a few days for them to return the money," Mr. Reddy said.

The Manager of the bank's regional office filed a complaint with the Governorpet police on December 1. The police were able to crack the case in a short time and recover most of the money.

The Police Commissioner said that eight names were filed in the FIR.

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