HYDERABAD: Ten persons including a DRDO employee, a retired Sub-Registrar, and a retired RTC conductor were held by Rachakonda police in connection to a collateral security scam. The suspects, it is reported, used to forge documents of ownership of lands in Adbullapurmet and helped industrialists obtain loans of over Rs 80 crore from various banks in return for a commission.
Kingpin Marella Srinivas Reddy, had been running this racket for more than a decade and is accused in 17 cases including a CBI case, all of which are pending trial.
The issue came to light after one of the beneficiaries defaulted loan payments and the original owner received summons from the bank, forcing him to approach police. Rachakonda Commissioner Mahesh Bhagwat said the suspects had earned nearly Rs 15 crore in the form of commissions.