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Syed Amin Jafri in Hyderabad
The Hyderabad city police have arrested seven more persons -- government and bank employees -- for their alleged involvement in the Rs 190-million scholarship scandal.
They were remanded to judicial custody on Friday. The government has now decided to set up a special court to try all the cases related to the scam.
According to a city police spokesman, the arrested include S A Subhan (an officer in the inspection department of the Andhra Bank), A K Khan (Andhra Bank's Nampally branch's manager), Srilakshhmi (principal of a fictitious college), Raja Reddy, Mohammed Akbar Khan, R Ganesh (a clerk in social welfare department) and M Shambhavi (deputy director, social welfare).
So far, 15 of the 19 accused have been arrested. A key accused, D Shankar Rao, his wife Swaroopa Rani and his close associate D Padma are absconding.
The prime accused in the scholarship scandal, R Motia Naik, had floated 15 bogus colleges and misappropriated funds to the extent of Rs 33.26 million.
Rao too floated five bogus colleges and misappropriated Rs 155.25 million which were meant for payment of scholarships.
Deputy Commissioner of Police Narasimha Rao said bank accounts of 20 bogus colleges, as also the personal accounts of Motia Naik and his family members, have been frozen.
The police have also seized the properties owned by Motia Naik and his family members, including 13 houses, three plots and 30 acres of farmland worth Rs 100 million, besides fixed deposits of Rs 18.8 million.
The police have also seized three palatial buildings, seven autorickshaws, two tractors, one commercial vehicle and 277 acres of land worth Rs 35.5 million belonging to Shankar Rao and his family.
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