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Prabhakara Rao arrested in urea case

Prabhakara Rao, son of former prime minister P V Narasimha Rao, was arrested on Saturday night and produced before the economic offences judge Krishna Murthy in Hyderabad yesterday by Enforcement Directorate officials in connection with alleged violations of the Foreign Exchange Regulation Act in the multi-million urea scam.

A ten-member ED team from Bangalore and Hyderabad sought assistance from the local police to track Prabhakara Rao. The Mahboobnagar district police arrested Rao near Kothur late last night while he was on his way to the state capital.

The Supreme Court directed the Central Bureau of Investigation to look afresh into the charges against Prabhakara Rao, who was not named in the chargesheet along with the main accused M Sambasiva Rao, and the two Karsan executives. Soon after, the Enforcement Directorate also decided to arrest Prabhakara Rao for possible FERA violations.

Prabhakara Rao, however, was unavailable and so the ED was unable to summon him for questioning after the economic offences special judge granted him bail last July following an undertaking he gave that he would be available for further enquiries.

The Mahaboobnagar district police handed Rao over to the ED which produced him before the special judge last night after hours of interrogation.

ED sources said Rao was grilled before being produced before the judge today.

UNI

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