Three held for misappropriation of Rs 5.30-cr treasury funds

Three Andhra Pradesh government employees from medical and health department as well as the Chintapalli Sub-Treasury here were arrested today for alleged misappropriation of funds to the tune of Rs 5.30 crores in the last two years, police said.
District Superintendent of Police (rural), Koya Praveen told reporters that based on the compliant lodged by Deputy Director of Vishakhapatnam District Treasury, M Geetha Devi, police conducted an inquiry and found that funds totalling Rs 5.30 crores for 2012-13 and 2013-14 were misappropriated from the Chintapalli Sub-Treasury here.
During investigation, it came to light that officials of the Additional District Medical and Health Office, Paderu had secured excess budget from their Directorate of Public Health and Family Health, Hyderabad on fake bills towards salaries and arrears of contract employees for 300 other contractual services in nine PHCs under the jurisdiction of Chintapalli Sub-Treasury.

Instead of the normal budget of Rs 1.20 crore, the Paderu office received Rs 6 crore for year 2012-13 and Rs 5 crore during year 2013-14, police said.
An amount of Rs 3.6 crore in 2013-14 and Rs 1.70 crore during 2012-13 was misappropriated, the SP said.
The arrested employees are: Senior Accountant and In-charge Sub Treasury Office, P Appala Raju; Senior Assistant Ranichandramathi Devi hospital in the city S Simhachalam; and Sr Assistant Additional DM and HO office, Paderu, P Sanjeeva Rao.

All the three accused were place under arrest today after they surrendered before the District Superintendent of Police at Anakapalli yesterday.

Police also recovered Rs 11.20 lakh cash from them besides seizing properties including houses, promissory notes and cars worth Rs 48.30 lakh from Appala Raju, Rs 80 lakh from Simhachalam and Rs 57.84 lakh from Rao.
The trio would be produced before Chintapalli today for remand.
Investigation is underway to establish the involvement of officers and staff of District Treasury, Visakhapatnam Sub-Treasury Chintapalli, Additional DM and HO Paderu and Directorate PH and FM, Hyderabad and the nine PHCs (Darakonda, Korukonda, Sapparla, Jerrella, Pedavalasa, Rajendrapuram, Tajangi, MM unit Pedavalasa and Chintapalli) in the case, Praveen said.