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Two more arrested in cheque fraud case

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Bundles of cash recovered by the White Collar Offences Wing in Hyderabad on Thursday. —
Bundles of cash recovered by the White Collar Offences Wing in Hyderabad on Thursday. —

Staff Reporter

One of them is an official in a private bank in Vijayawada

HYDERABAD: The police on Thursday recovered Rs. 1.01 crores in the Andhra Bank fake cheque fraud case by arresting two more persons, including an assistant manager of ICICI bank’s Vijayawada One Town branch G. Prasad.

The prime accused A. Rammohan Rao and Ramesh had paid Rs. 1 crore to the assistant manager for helping them withdraw the money knowing that the cheque they presented was fake, Hyderabad Additional Commissioner of Crimes K. Narsimha Reddy told a press conference.

They also gave Rs. 4 lakhs to Mohan Prasad, who was arrested along with the assistant manager, for assisting them. A sum of Rs. 1 lakh was recovered from him.

A builder, Rammohan Rao was neck deep in debts after a massive real estate venture he had taken up at Balanagar ran into crisis for want of buyers. Along with his friend Ramesh, who burnt his fingers in the construction field, he planned to present a fabricated cheque and encash it.

The duo approached K. Sarath Babu, deputy manager of Andhra Bank’s Cheque Processing Centre, and struck a deal with him to pay money for processing a fake cheque.

As per the plan, they got opened an account in the name of G.V.V.S. Prasad in Vijayawada’s ICICI bank. They first presented a fake cheque of Andhra Bank for Rs. 5.4 crores in the name of the State Financial Corporation to be deposited in Prasad’s account. Being the head of cheque processing centre, Sarath Babu cleared the cheque and got the money deposited in Prasad’s account.

However, Prasad refused to cooperate with them on learning about the fraud plan and disappeared. Then, the accused approached G. Prasad of ICICI bank, explained about the fake cheque, disappearance of Prasad and offered him Rs. 1 crore to help withdraw money from Prasad’s account using an impostor.

The police said the person who signed the bank withdrawal forms posing as Prasad at the instance of the accused was yet to be identified.

After withdrawing the money, they paid sums to Sarath Babu and G. Prasad. The police first arrested G.V.V.S. Prasad and then Sarath Babu. On Thursday, they arrested the ICICI bank assistant manager and another member of the gang Mohan Prasad.

Detective Department DCP R.S. Praveen Kumar warned that action would be initiated against bankers if they don’t follow due procedures in clearing cheques and release of money involving huge sums. They should ensure their employees don’t take advantage of the system, he said.


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