HYDERABAD: The CCS police have booked former Citizen Cooperative Society (CCS) SR Nagar branch manager, Rayudu Chandra Sekhar, for allegedly cheating the society of Rs 2.49 crore by sanctioning gold loans against spurious ornaments.
According to the complaint filed by Manne Narendra Kumar, Managing Director of the society, Sekhar, who had been with CCS for 18 years, colluded with one customer, Lakkimsetty Naga Visweswarara Rao, and others to fraudulently obtain gold loans. The two allegedly fabricated loan applications in the names of several individuals using fake gold ornaments.
The gold appraiser, M Srinivas, also reportedly colluded with Sekhar and failed to properly test the pledged gold. In all, 39 loans amounting to Rs 2,49,74,000 were sanctioned between November 2024 and April this year.
The fraud came to light after Sekhar’s transfer, when the new manager found that of 535 gold loan packets in the strong room, nine were missing and 38 contained spurious gold. Sekhar later admitted to the fraud.
While Visweswarara Rao repaid Rs 69.81 lakh with interest, Rs 2.49 crore remains outstanding. The CCS police have registered a case under relevant sections and launched a probe.