Koneru gets bail nine months after arrest

Published: 03rd August 2012 09:19 AM  |   Last Updated: 03rd August 2012 09:19 AM   |  A+A-

Justice Samudrala Govindarajulu of the High Court on Thursday granted conditional bail to Koneru Rajendra Prasad, an industrialist and accused in the APIIC-Emaar township scam.

Rajendra Prasad was arrested by the Central Bureau of the  Investigation in November 2011 and was the first to be arrested in the case. The CBI charged that Prasad, a promoter of Stylish Homes Real Estate

Private Limited, collected ` 96 crore from the buyers of plots in Emaar Township after grossly undervaluing the market price and causing a huge financial loss to the joint venture company in which the AP Industrial Infrastructure Corporation (APIIC) held 26 per cent equity as well as to the exchequer.

The judge, in his order, pointed out that after the investigation the prosecution came to the conclusion that even though the accused had collected ` 96 crore, the loss to the exchequer was ` 24.96 crore as APIIC’s 26 pc equity was diluted subsequently. “It is an offence involving considerable loss to the state exchequer but, at the same time, it cannot be said that it is a grave and alarming offence.”

The judge observed that the investigation into the role of the petitioner, accused number six, had already been completed and granting bail to him would not cause any adverse effect to further steps going to be taken up by the CBI to collect more information or tracing or localising further funds out of the ill-gotten wealth and also during trial in the lower court.

The judge directed Koneru to furnish a bond of `5 lakh, to surrender his passport and not to leave AP.

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