Rajamahendravaram: Victims hopeful of justice as CID expedites probe

Rajamahendravaram(East Godavari District): The victims of Jayalakshmi Cooperative Society scam are hopeful over getting justice as the CID officials expedited investigation. The main accused in the scam of about Rs 560 crore were shifted from Kakinada sub-jail to Rajahmundry central jail on Tuesday.

It should be reminded here that the organisers of Jayalakshmi Cooperative Society have collected hundreds of crores of rupees from the depositors by making a big campaign that the deposit money will be doubled in just five years (60 months). The then Chairman, MD, and most of the directors are from Kakinada and Rajahmundry. All the directors are currently absconding.

The irregularities in this society came to light in last February. By then, crores of rupees of the depositors' money was in the bank and payment of four to five months' interest was stopped. Deposits were not repaid even after the maturity time. The depositors staged protests in Kakinada and East Godavari districts.

The police registered a FIR on April 9. The then bank chairman Rayavarapu Visalakshi, the then MD Rayavarapu Sitaramanjaneyulu (husband of Visalakshi) and the then director Jayadev Mani (son of Visalakshi and Seetharamanjaneyulu) were A1, A2 and A4 in this case.

Following the victims' protest seeking justice for a long time, the officials of Cooperative Department conducted an inquiry into the matter and found out that more than Rs 550 crore scam took place in the society. It was revealed that society's governing body, a former secretary of a prominent cooperative bank, who acted as a consultant, and a chartered accountant conspired to embezzle the society's funds. Co-op department officials confirmed that loans given to 32 people illegally, ignoring the rules, were up to Rs 129 crore. They also informed that two persons from the then managing committee misappropriated about Rs 86 crore and the person, who acted as a consultant, had illegally gave loans of around Rs 5 crore to his relatives.

Later the case was handed over to CID, after which, investigation picked up some speed.

Last Saturday, three members of Rayavarapu family were arrested in Kakinada and taken to the sub-jail there. They were shifted to Rajahmundry Central Jail on Tuesday morning.

Cooperative Officer (FAC) of Kakinada district BK Durga Prasad told The Hans India that the society was registered under the Cooperative Societies Act in 1999 and deposits were collected from 19,000 people. The cooperative department has conducted a full investigation and reported to the government. He said as part of the next steps, the old executive committee, which was involved in irregularities, was completely removed and a new committee was appointed. The CID is investigating the misappropriation of funds, illegal assets of the directors who have committed irregularities, and the transactions that are against the rules. Action is being taken to confiscate the properties of those, who have committed irregularities and civil and criminal cases will be filed against those responsible for this, he added. After the tribunal's verdict on them, the property acquisition process will be taken up, Durga Prasad informed.

Rajahmundry CID DSP ABG Tilak said that a search is on to nab the absconding directors. He said that all the accused will be arrested soon.