Oil mill owner arrested

Staff Reporter

VISAKHAPATNAM: The proprietor of an oil mill company in Guntur was arrested on Friday for allegedly cheating a bank to the tune of Rs.1.25 crores.

The accused K. Suresh Babu had entered into a criminal conspiracy with two other public servants and availed himself of Open Cash Credit (OCC) limit to the tune of Rs.1.25 crores from the Koretipudi branch of Andhra Bank in Guntur, according to the Central Bureau of Investigation, Visakhapatnam.

The accused withdrew the amount and diverted the bank funds. He offered collateral security of 12 different properties amounting to Rs.2.19 crores out of which some properties were of very nominal value of Rs.12 lakhs and Rs.15 lakhs but were overvalued at Rs.61 lakhs and Rs.76 lakhs. Further, the value of the collateral securities shown as 2.19 crores had come down to Rs.77 lakhs.

Suresh Babu has been absconding since the beginning of the investigation of the case and had also sought employment abroad and has come to India now.