Hyderabad: Ten officials of the Indian Overseas Bank (IOB) in Hyderabad, including two retired bankers, were arrested on Tuesday in an alleged fraud case Rs 6 Crore, according to police.
Officials, posted in various branches of the city’s public sector bank, were accused of defrauding the Hyderabad Metropolitan Development Authority (HMDA) by fraudulent withdrawal of over Rs 6 crore.
The accused arrested includes the principal director of Mehdipatnam Branch T Sreenivasa Rao, G Manjula, deputy director of the Adarsh Nagar division, Ravichandra, deputy director of the Chikkadpally branch, P Bala Krishna, V Rama Chary Padma Nabhan retired.
The others are TK Bayamma, N Krishna, Malini Narasimhan, K Radhika and R V Pandu Ranga Sarma (all clerks), the police said in a statement Tuesday night.
The statement also added that accused bank officials have fraudulently passed, authorized or modified HMDA checks in collusion with key accused Lunavath Shankar Naik and other accused Y Vijay Mohan Krishna and Raju Ahmed. The three were arrested in March, he said.
The accused defrauded the HMDA by forging checks issued in favor of a private security agency, Sai Security Services, in 2008-2016, police said.
The HMDA authorities issued 55 checks, amounting to Rs 76,67,735, on behalf of Sai Security for their services to the public body.
But Naik, in complicity with Mohan Krishna, an audit officer in HMDA, and Ahmed, opened a fake account on behalf of Sai Security Services. They changed some of the checks issued by HMDA and seized an amount of Rs 6.03 crore in complicity with the stopped BIO employees (both serving and retired), the publication was added.
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They were accused of cheating and forgery, among others under IPC, and were placed under arrest, police added.