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Cops seize Krushi ex-chairman's properties

Syed Amin Jafri in Hyderabad

The Andhra Pradesh police seized the palatial bungalow of Krushi Co-operative Urban Bank ex-chairman K Venkateswara Rao at his native village in Krishna district, besides land at Paravada near the port city of Visakhapatnam in connection with the bank scam.

Disclosing this at a media conference on Thursday evening, Director-General of Police H J Dora said that the police were also pursuing the leads about the other properties of the fugitive Venkateswara Rao in Hyderabad, West Godavari and Krishna districts.

The DGP said that the Krishna district superintendent of police has sealed the palatial bungalow of Venkateswara Rao at Venkatapragada village, estimated to be worth about Rs 10 million.

A guard has been posted there and a banner was hung informing the people that 'this property belongs to Krushi Bank depositors'.

Dora said that the Visakhapatnam police commissioner has similarly seized the 13.47-acre land and buildings acquired by Gold Crest Power Limited, another company floated by Venkateswara Rao, at Paravada in Visakhapatnam district. The property was worth about Rs 4 million.

"The superintendents of police of Krishna and West Godavari and commissioners of police of Hyderabad and Visakhapatnam have also been given leads to pursue and trace the other properties of the Krushi Bank chairman. The CID and CCS teams are trying to locate some flats which the accused has in the city," the DGP said.

Venkateswara Rao was stated to have 70 acres of agricultural land in his native village, besides an aquaculture farm spread over 50 acres at Bhimavaram in West Godavari district.

The accused reportedly acquired and later sold a 50-acre mango garden near Nuzvid in Krishna district. "We are looking into all the details and we will seize other properties as soon as we locate them," the DGP added.

He said that the main branch office building of Krushi Bank would also be taken over. The police had seized computers, air-conditioners and other gadgets from Halcyon Softech Limited owned by Venkateswara Rao.

The police also seized three costly cars and were on the look-out for two more cars belonging to the accused in the city.

He said that the state government has already permitted the CID to invoke the AP Protection of Depositors of Financial Establishments Act,1999, against the Krushi Bank chairman and directors. The competent authorities for confiscating the properties are the district collectors and the CID and they have been asked to proceed further in the matter.

He said that the CID teams were also making inquiries at stock exchanges and the shares held by the accused in demat or other forms were also liable to be seized.

The DGP said that the CID had formed 10 special teams to arrest the ex-chairman and eight other directors of the Krushi Bank.

The teams have fanned out in the city as well as other districts and places to nab the accused. So far, only the vice-chairman of the bank K Venugopal Rao, who is younger brother of Venkateswara Rao, has surrendered.

"After Venugopal Rao surrendered to the police on Wednesday evening, the CID and CCS teams have interrogated him but he was not coming out with any substantive information. He told the investigators that he was a low-paid employee. He and his sister, who is also a director of the Bank, were given an Indica car to move about. He claimed that he and his sister were only namesake directors and they had not taken any active role in the bank's affairs," Dora said.

Asked whether Venkateswara Rao was hiding in the country or had fled to the United States, the DGP quipped: "It is anybody's guess."

He also denied reports that the vice-chairman was also hiding in the city before his surrender. "He was asked by his counsel to keep moving. He went to Bangalore, Berhampore and other places. He was not here in hiding. All that is bumkum," he pointed out.

Venugopal Rao, he said, has been produced in the court on Thursday and his police custody was sought.

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