Special Correspondent

Managers of two banks found responsible for the multi-crore scam

Special public prosecutor and special Government pleader appointed to conduct prosecution

HYDERABAD: The State Cabinet has resolved to launch criminal action against V. Subramanyam and N. Sarasadevi, the two main accused in the Centrally-sponsored Sarva Shiksha Abhiyan (SSA) funds scam, and recover from them the funds to the tune of Rs.14.23 crore they allegedly misappropriated.

The Cabinet took this decision at its meeting here on Friday after accepting the report of the Justice A. Venkatrami Reddy Commission of Inquiry which went into the SSA (re-named as Rajiv Vidya Mission in the State) scam.

The one-man commission said the two accused committed embezzlement by depositing the SSA funds first in Vijaya Bank, West Maredpalli and Indian Bank, Osman Gunj, both in Hyderabad, and then diverting the money to their individual accounts. Subramanyam was an accounts officer in the SSA project and Sarasadevi, a private individual.

Briefing reporters, Information Minister A. Ramanarayan Reddy, said the commission had also found the managers of the two banks, and five other private individuals--Harsha Pradeep, Vijitha (son and daughter of Sarsadevi), R. Narasimha Rao, R. Rambabu and Bhavani, responsible for the scam as the tainted money was kept in their accounts.

Attach properties

The commission held that three other employees of the SSDA project-- J. Prasad, S. Venkaiah and R. Malathi who served as finance/accounts officers, were negligent in supervising funds management.

The Minister said the Government had asked the CID which investigated the case, established the fact of misappropriation, and charge-sheeted Subramanyam and Sarasadevi, to attach their properties already identified and recover the funds.

A special public prosecutor and special Government pleader had been appointed to conduct their prosecution.

Mr Reddy said the Cabinet approved all the measures initiated by the School Education Department to streamline the funds management of SSA in line with the recommendations of the commission.