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Krushi Bank director arrested in Rajahmundry

Syed Amin Jafri

One of the absconding former directors of the scam-tainted Krushi Co-operative Urban Bank was arrested by the police at Rajahumundry late on Tuesday night.

According to state police sources, a team of Crime Investigation Department officials got a tip-off that the director Penugonda Ramamurthy, was taking shelter in a relative's house in Rajahmundry. He was picked up from the place.

Ramamurthy was absconding, along with the other directors of the Bank from August 11. The Mahankali police had registered cases against Ramamurthy and other directors under sections 406 and 420 of the IPC in connection with the bank scam on August 15.

The cases were later transferred to the CID.

Earlier, on August 22, K Venugopal Rao, former vice-chairman of Krushi and one of the accused in the scam case, surrendered before the CID. He was later remanded to police custody till August 30 by the metropolitan magistrate.

Ten special teams have been formed to nab the other former directors and ex-chairman of the Bank. The state government also announced a reward of Rs 500,000 for clues on their whereabouts.

Meanwhile, state police sources indicated that the other former directors may give themselves up to the CID or surrender in the court 'anytime now'.

They are K Suneetha (sister of Venkateswara Rao), VVA Prasad, K Sridhar, Ch Sri Ranga Sai, K Ramesh, P D Dina Chakravarthy and V Ram Babu. The police exuded confidence that Venkateswara Rao would also be arrested 'anytime now'.

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