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Krushi scam: Rs 70-million worth properties to be attached

Syed Amin Jafri in Hyderabad

The Andhra Pradesh government has ordered the attachment of properties of Krushi Co-operative Urban Bank's ex-chairman, other ex-directors and their relatives in connection with the bank scam.

The government issued the orders, invoking the AP Protection of Depositors of Financial Establishments Act, for attachment of the movable and immovable assets seized by the CID from the ex-chairman and others connected with the scam-tainted bank.

The GO Ms No.193, dated September 23, points out that the action was taken under section 3 of the Act, based on the report submitted by the CID which identified the immovable and movable properties of the accused persons.

"The attached immovable and movable properties will be put to auction and the proceeds will be distributed among the depositors," state police spokesman Shujath Ali told rediff.com on Monday afternoon.

The CID has so far frozen 14 bank accounts worth Rs 17.7 million. These included fixed deposits and other accounts in AP State Cooperative Bank, HDFC Bank, Global Trust Bank, Standard Chartered Bank, Citi Bank and Vijaya Bank.

The immovable properties include 14 pieces of lands under various survey numbers, a palatial house and a cattleshed owned by the family members of former chairman of the bank K Venkateswara Rao in his native village Ventrapragada in Peddaparupudi Mandal in Krishna district. The value of these properties is Rs 29.8 million.

Another five sites worth about Rs 1.9 million owned by the bank's former chairman's family members in Gollapalli village in Nuzvid Mandal in Krishna district, including 26 acres held by bank's former vice-chairman K Venugopal Rao (brother of Venkateswara Rao) and 15 acres owned by former director K Sunitha (sister of Venkateswara Rao), were also attached.

The CID also identified several flats in Nagarjuna Hills in the city owned by Venkateswara Rao and his family members. These ranged in plinth area from 373 square feet to 1,125 sq feet.

Another property comprising 16 acres at Parawada industrial area in Visakhapatnam district with an estimated value of Rs 5.4 million belonged to Venkateswara Rao.

So far, the CID also seized several vehicles, including two Mercedes Benz cars, three Tata Indica cars, a Ceilo car, a Tata Sumo van, a Maruti car, an Open Astra car, a Massay Ferguson tractor, a Bajaj Chetak scooter and a Suzuki Samurai motorbike owned by Krushi Bank and its former directors and ex-chairman.

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