Minister’s kin booked for ‘fund diversion’

Attachment of assets of Jammalamadugu society’s chairman ordered

September 27, 2017 01:02 am | Updated 01:02 am IST - KURNOOL

Cooperative department officials detected alleged diversion of funds to the tune of ₹2 crore in the Jammalamadugu Town Cooperative Credit Society Limited in Kadapa district, popular as Jammalamadugu Town Bank.

They lodged a complaint against its chairman Tatireddy Hrishikesava Reddy, a close relative of Marketing Minister C. Adinarayana Reddy.

Cheques bounce

The issue came to light after 663 cheques of the society bounced when its customers presented them to the Axis Bank branch in Proddatur in the last few days.

Body dissolved

On a protest and complaint by the society customers, the department officials conducted an inquiry and dissolved the governing board of the town bank and appointed Jammalamadugu Divisional Cooperative Officer Subbarayudu as its special officer.

The cooperative credit society has been receiving deposits from people and sanctioning loans under the Cooperative Act.

It operated its account in the Axis Bank branch at Proddatur.

The Minister’s brothers, former MLC Narayana Reddy was the honorary chairman and C. Sivanatha Reddy was the director while his brother-in-law Tatireddy Suryanarayana Reddy was the society’s vice-chairman.

Inquiry

The divisional cooperative officer conducted an inquiry and detected that the funds were diverted between March and August this year.

The official lodged a complaint with the Jammalamadugu police against Mr. Hrishikesava Reddy alleging that he diverted funds to the tune of ₹1.41 crore and personally utilised another ₹54 lakh.

Mr. Subbarayudu also issued orders under Section 73 of the Cooperative Act for the attachment of the assets and bank accounts of the society chairman.

Society CEO Balaji Srinivas reportedly admitted before the divisional cooperative officer that he had utilised the society funds of ₹5 lakh.

The Jammalamadugu police registered a case against Mr. Hrishikesava Reddy and took up investigation.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.