Andhra Attaches Ex-Krushi Bank Chairmans Assets

Andhra Pradesh today ordered the attachment of Rs 9.5 crore worth assets and properties of the absconding ex-chairman of the scam-tainted Krushi Co-operative Urban Bank, K Venkateswara Rao.

Through the order (No 259) the government froze assets including bank accounts, investments in venture capital funds, shares, land and flats.

It has directed the criminal investigation department (CID) probing the Krushi Bank case to take necessary action in this regard.

The government has also requested the additional director general of police, CID, M A Basith, to pass an ad-interim order under section 3 of the Andhra Pradesh Protection of Depositors of Financial Establishment Act - 1999, attaching the properties of the Krushi Bank.

According to the order, Venkateswara Rao and his private firms had Rs 1.37 crore investment with Public Debt Office of the Reserve Bank of India (RBI), Rs 2.56 lakh in his two accounts with Global Trust Bank, Rs 1.15 crore in Maharashtra Krishna Valley Development Corporation bonds, Rs 75 lakh with Kotak Mahindra Venture Capital Fund, Rs 3 crore with Phoenix Share and Stock Brokers, Mumbai, and fixed property worth Rs 42 lakh.

Earlier, the government had attached properties worth Rs 189.4 million belonging to Venkateswara Rao and other former directors of the scam-tainted bank.

The total value of assets and properties seized so far is about Rs 30 crore. These properties include a palatial house of Venkateswara Rao in his native village, flats and lands at other places in the state, shares and other deposits.

Though 10 special teams were formed to nab the 33-year-old Venkateswara Rao and two other directors K Sreedhar and K Sunitha, the trio has eluded the police for three months since the scam broke in mid-August this year.

The other directors and key officials of the bank were arrested by the police and some of them have been released on bail.

The now-defunct bank has a total deposit liability of Rs 25.49 crore from about 7,996 depositors. Of these, about 760 depositors belong to the Rs 1 lakh and above category, while the rest have deposited amounts below Rs 1 lakh.

According to the AP Registrar of Cooperative Societies sources, the Deposit Insurance and Credit Guarantee Corporation (DICGC) is expected to release the insured sums of the small depositors in the next two weeks.

The Rs 1 lakh and above category depositors too are expected to receive insurance amount subject to a ceiling of Rs 1 lakh from DICGC along with the small depositors.