The Hindu : Front Page : ICFAI employee held on Rs. 98.65-lakh fraud charge

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Friday, Dec 14, 2007
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ICFAI employee held on Rs. 98.65-lakh fraud charge

Staff Reporter

HYDERABAD: An employee of the Institute of Chartered Financial Analysts of India (ICFAI) Ch. Appa Rao, who allegedly withdrew Rs. 98.65 lakh from the institute’s account using fake and forged documents, was arrested on Thursday. While one of his associates, S. Suresh, 27, a businessman, was also arrested, another associate K. Narayana Rao, is still at large.

An amount of Rs. 19.35 lakh and Fixed Deposit Receipts (FDRs) worth Rs. 64 lakh were recovered from the arrested, DCP (Detective Department) R.S. Praveen Kumar said in a press release. Appa Rao was familiar with all financial transactions of the ICFAI, Nagarjuna, since he was working as Assistant Accounts Officer.

He prepared fake formats of the Real Time Gross Settlement (R.T.G.S.), a bank transaction mode that facilitates transfer of huge amounts from one account to another within hours. With his friend Suresh’s consent, he got an account opened in the State Bank of Hyderabad’s Ramnagar branch in the name of latter’s staffer Narayana Rao claiming he was owner of Sneha marketing agency, a fictitious company, Mr. Praveen Kumar said.

‘No verification’

Investigation into the case proved that bank officials allowed the accused to open accounts without verifying records and did not follow the usual norms, the DCP said. “Even the banks concerned would be held responsible for the fraudulent acts by their field staff if such verification services are outsourced,” the DCP cautioned.

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