Chirala: Vetapalem Society secretary arrested

Prakasam SP Malika Garg assuring justice to the depositors of Vetapalem Society on Thursday

Prakasam SP Malika Garg assuring justice to the depositors of Vetapalem Society on Thursday


He embezzled `22.69 crore

Chirala: Prakasam district SP Malika Garga on Thursday informed that the police arrested the absconding secretary of the Vetapalem Cooperative Credit Society and assured that justice would be done to the depositors by recommending for the seizure of accounts and properties of all accused.

Speaking at a press meet in Vetapalem, Malika explained that the local police received a complaint from Gutti Srinivasa Rao, a depositor in the society about non-payment of matured deposits and absconding of the secretary-cum-manager Sriram Srinivasa Rao.

She said that during the investigation, they found the facts that there are nine persons, including the president and vice-president as directors in society, and they are responsible for all activities.

Sriram Srinivasa Rao has been working as the secretary-cum-manager of the society since 1986 and maintaining the records of 1930 fixed deposits, 138 recurring deposits and 850 saving accounts.

But, the society directors never bothered to verify the records or send them for audit by the chartered accountant to submit the report to the district cooperative society.

During the verification, it was found that secretary-cum-manager Sriram Srinivasa Rao misappropriated Rs 22,69,91,882 of the depositors with the knowledge of the president, vice-president and other directors. It was found that he invested Rs 5 crore in LIC bonds, plots, gold, equity shares and constructed a new house.

The SP said that action will be taken against all accused including president Valiveti Nageswara Rao, vice-president Vallampatla Ramalinga Swamy, directors Chillamkuri Anjaneya Gupta, Koduri Rajendra Prasad, Nune Mohan Krishna, Kolisetty Venkata Satyanarayana and Rayavarapu Srinivasa Rao.

She said that they are writing to the banks to freeze the accounts and lockers of all accused and their relatives and properties will be auctioned to protect the depositors.

The SP appreciated OSD K Chowdeswari, Chirala DSP Srikanth, rural CI Rosaiah and SI K Kamalakar for their efforts in investigating the case.

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