Friday, April 8, 2016

FD fraud kingpin is a master scamster

Hyderabad: The arrest of Chunduri Venkata Koti Sai Kumar by the Central Bureau of Investigation (CBI) in the multibank fixed deposit (FD) fraud case has revealed that he masterminded the entire scam in collusion with government officials, including some All India Service (AIS) officers. When CBI caught Sai Kumar in a Mumbai hotel on Thursday , he was all set to flee from the country.

Sai Kumar was involved in a similar fraud in 2012 and had even spent a few months in judicial custody . He was arrested by CID sleuths of undivided Andhra Pradesh along with three other associates in a Rs 55.47 crore scam in AP State Minority Finance Corporation (APSMFC) n October 2012. The police also came to know that the scam was executed with the help of Indian Forest Service (IFS) officer Md Ilyas Rizvi, who was the corporation's MD at that time.

Later, CID had sought permission from the state government to prosecute Rizvi, but the government denied it. Recently , Telangana CID sleuths again sought permission from the AP government to prosecute Rizvi, but they are yet to get a response.

Meanwhile, Sai Kumar came out of prison on bail and began planning a similar fraud.

He, with the help of Mani Damodar of Prakasam district, exSBH employee KV Ramana Rao and certain bank officials siphoned off Rs 8.45 crore FD amount from SBH's Malkajgiri branch and Rs 6.15 crore FD amount from United Bank of India's Khammam branch. CBI, which arrested Sai Kumar from Mumbai, now believes that he is the key player in siphoning off Rs 44 crore FDs belonging to AP State Housing Corporation Ltd (APSHCL) and AP Pollution Control Board (APPCB) from SBH's Mehdipatnam and Singapore Township branches.

Currently, Andhra Pradesh CID is probing the cases and they have arrested eight persons. The cases are likely to be transferred to the CBI.

In their probe, CID found out that one of the accused, Thomas, who runs a poultry feed business and moves closely with several government officials, has played a crucial role in the execution of the fraud. The probe agency has also found out that a mid-level All India Service officer, who is in a key position with one of the government organisations involved, has helped the fraudsters. "Ideally, banks do not employ any broker o open FD accounts. With a single phone call, the bank representatives will come to the door-step and help. Banks also do not give any commissions for depositing money . But in all these frauds, the government organisations involved have used middlemen to deposit funds in banks which clearly indicates collusion of certain senior government officials with the fraudsters," a CBI official said.

CBI has found out that Sai Kumar was involved in similar rauds since 2004. After the arrest in Mumbai, CBI sleuths brought Sai Kumar to Hyderabad on Friday, and he was remanded n judicial custody. CBI will move a petition before the court for his police custody to identify the government officials involved n the organised fraud.

CBI arrests mastermind of State Bank of Hyderabad fixed deposit fraud case

NEW DELHI: The Central Bureau of Investigation on Thursday arrested alleged mastermind of a fixed deposit fraud at State Bank of Hyderabad in which funds of official liquidator of high court of judicature at Hyderabad were allegedly siphoned off by the employees of the bank.

VK Sai Kumar, Managing Director of Hyderabad-based software firm Swal Computers who was identified by two co-accused as main alleged mastermind was nabbed from a hotel in Mumbai by a CBI team where he has been hiding.

The agency has arrested an ex-employee of the Bank KV Ramana Rao and one Damodaran Mani who had revealed the name of Kumar as the master mind behind the fraud and main beneficiary of the fraud amount.

Kumar was also arrested in 2012 for alleged misappropriation of Rs 55.47 crore worth of fixed deposits (FDs) in Vijaya Bank, for allegedly forging documents to open current account in the name of AP State Minority Finance Corporation (APSFMC), the sources said.

The sources said he is also allegedly involved in other CBI cases of bank fraud and it is learnt that he is a habitual offender.

It is alleged that office of the Official Liquidator, High Court, Hyderabad has transferred Rs 9.86 crore to State Bank of Hyderabad, Malkajgiri Branch, Hyderabad with a request to issue Fixed Deposits in the names of various companies in liquidation.

The branch manager had sent these FDs in favour of Allwyn Watches Limited through one K V Ramana Rao, ex-employee of the Bank, the FIR alleged.

During verification, on a later date, by the Official Liquidator, it was informed by the Branch Manager that one of the FDR worth Rs 8.45 crores issued in favour of the company was prematurely closed under the purported instructions issued by the Liquidator's Office.

It is alleged that the FDRs in the possession of the Official Liquidator are fabricated ones.

The high court had orderd CBI to probe the case.

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