The city police arrested the directors and several others in connection with the cheating case pertaining to Vijayakrishna Finance Company on Sunday.

The Two Town police arrested company director Gajapalli Nageswara Rao and others on the charge of misusing the deposits of customers and recovered Rs.9.59 lakh from their possession.

The police said that firms under the names of Vijayakrishna Permanent Fund Ltd, Vijayakrishna Mutually Aided Cooperative Thrift Society Ltd, and Mohana Krishna Chit Funds Pvt Ltd were being run at the Gajapalli Mansion opposite SBI Kothapet branch in Velagaletivari Veedhi near fish mrket. They collected crores of deposits from customers but were allegedly not repaying them on maturity of the funds. The directors and others were at large since August 14.

Several depositors, who grew suspicious of the directors' activities, visited the firm's office on August 17 when they found it closed. As there was no information about their whereabouts, the depositors filed a complaint based on which the police registered a case against nine directors and several family members involved in the operations.

As part of the investigation, the police checked the records of property transactions of the accused persons in Krishna and West Godavari districts and also at the Hyderabad sub registrar office. Information was also sought on their property transactions from the IG and Commissioner of Stamps and Registration Department.

The police said it was being investigated as to how the directors misused the depositors' money and diverted the same into other accounts. The transfer of money to the relatives of the directors in Vijayawada, Kondapalli, Tirupati, and Hyderabad was also being investigated.

The arrested persons included Gajapalli China Venkateswara Rao, Venkata Narayana, Venkata Koteswara Rao, Jyothi Kumari, Jaya Lakshmi, Venkata Naga Anuradha, and Vani.

Various records, computer systems and hard discs were already seized from the firm's office as part of a search warrant.

More In: Vijayawada