VIJAYAWADA: The Krishnalanka police arrested managing director of a chit fund company, Shubhadarsi Estates, Peddi Sankara Rao Wednesday.
The police searched the office of Shubhadarsi Estate at Labbipet and seized some important documents.
The police said cases were registered against Sankara Rao and two directors of the company - Kommuri Patel and A Venkata Satyanaraya. - under section 420 (Cheating) of IPC and Section 76 of the Chit Fund Act. Patel and Satyanarayana are at large.
Central Zone ACP K Lavanya Lakshmi, Krishnalanka CI Sk Ahmed Ali and SI E Bala Sowry presented Sankara Rao before the media. It may be recalled that Shubhadarsi Estates closed down on July 1 after defaulting on payments to investors running into lakhs of rupees.