ONGOLE: Prakasam police on Thursday arrested eight persons for allegedly misappropriating `22.69 crore worth of deposits in Vetapalem Cooperative Credit Society Ltd (VCCSL). The police identified the accused as VCCSL secretary/manager Sriram Srinivasarao, president V Nageswara Rao, vice president V Ramalinga Swamy, and directors C Anjaneya Gupta, K Rajendra Prasad, N Mohan Krishna, K Venkata Satyanarayana and Rayavarapu Srinivasa Rao. All the ccused would be produced before the court soon, the police said.
The police have reached out to all the respective bank managers to freeze the accounts and lockers of the accused and their relatives. “As per law, their accounts and properties will be seized and the properties will be auctioned to protect the interest of the depositors,” SP Malika Garg said. Meanwhile, district cooperative officer P Rajasekhar ordered a thorough inquiry. The committee will comprise senior assistant registrar B Koti Veeraiah and senior cooperative Inspector KV Ramanaiah. On the other hand, Garg ordered an investigation committee under the supervision of Additional SP K Chowdeswari.
According to Garg, they came to know that the VCCSL has 1,930 FDs, 138 RDs and 850 SDs amounting to `22,69,91,882 with a total of 1,737 shareholders. Rao had misappropriated more than `22.69 crore worth deposits with the knowledge of the president, vice president and directors of the society. After embezzling the funds, he invested `5 crore in LIC bonds, shares and purchased lands, flats and gold and constructed a new house. He also bought properties under benami names. The police acquired all necessary evidence and proof to establish the crime and arrested the eight accused persons at St Ann’s Engineering College area in Vetapalem.
As per bylaws of the society, the president and the directors have to verify the records and cash transactions. But they did not do so as they were under Rao’s influence. Every year CAs audit the records and their report is submitted to the District Cooperative Society. But no one observed the irregularity. For a few months, depositors made rounds of the VCCSL’s office and contacted Rao for payments of their matured deposit bonds. But, the secretary kept postponing the payments, week after week. On July 18, based on the complaint filed by one depositor G Srinivasa Rao, the police have launched the probe and arrested the eight accused.