HYDERABAD: City police on Wednesday arrested a notorious cheat, Mundrathi Kishore Varma(43), for cheating a bank by submitting fraudulent and forged documents of a land, originally a municipal park, as collateral security and obtaining a loan of `5 crore.
Sleuths of the CCS registered case under various sections relating to cheating, forgery and criminal breach of trust. Other accused Abburi Srinu, Chinna Subba Reddy, Ratna Kumar and A Ramakrishna Raju are still at large.
According to the police, Varma, Srinu and Reddy started a poultry and fish feed trading business in the name of Vista Agrotech in 2005 and decided to procure a bank loan by submitting fake and fabricated documents as collateral security. They colluded with Ratna Kumar and Raju to identify an open land in Kakinada in East Godavari. They then approached an auditor and through him approached Cosmos Co-opeartive Bank in Secunderabad for a loan of `5 crore for working capital. The said property, they informed the bank, belonged to one Bonam Nagabhushana Rao, a fictitious man. After producing a man whom they introduced as the owner, they entered into a mortgage deed.
It was in 2012 during the renewal of loan that they failed to produce the so-called owner invoking suspicion from the bank employees. The property, which was furnished as collateral security, was actually a municipal park in Kakinada.
The main accused was involved in two other cheating cases in the city in the past.