Dora denies son's role in Krushi Bank muddle

By Our Staff Reporter

HYDERABAD, AUG. 23. In the backdrop of rumours doing rounds that a senior police officer's son was involved in the Krushi bank scam, the Director-General of Police, Mr. H.J. Dora, on Thursday said "though his son had worked with Halcyon, a software company, flouted by the Krushi Bank Chairman, Mr. K. Venkateswara Rao, he was in no way connected with the bank's transactions".

Addressing a press conference here, the DGP said mere working with a company set up by Mr. Venkateswara Rao did not amount to involvement in the bank's affairs. Mr. Dora said his son managed Halcyon for two or three months last year and eventually gave up the job as he was not acquainted well with the affairs of software companies. The DGP stated his son did not even take remuneration for his services. Later, he was selected by the GE Caps for a managerial post.

The DGP denied charges that some influential persons connected with the scam were being protected by the police and that there was political interference. "The question of shielding the bank chairman or its directors does not arise", he asserted. He conceded that Rs. 10 lakhs of `Bhadrata' scheme, managed by the Police Welfare Association, was deposited with the Krushi Bank for one-year period, but the money was safely returned with "some 15 per cent interest".

He felt that with misappropriation of money becoming a regular feature with financial institutions, Acts pertaining to recovery of money should be further strengthened. Mr. Dora said the bank's Vice-Chairman and Mr. Rao's brother, Mr. K. Venugopal, who surrendered before the police on Wednesday, had denied his role in the muddle. Mr. Venugopal told the police that he did not even visit the city regularly though he was made director, the DGP said.

The DGP said a total of 10 teams--five each from the CID and the CCS--on the job to apprehend the accused persons. During investigations, the police had come across documents that revealed Mr. Rao owned some flats in Hyderabad and a mango garden at Nuzividu in Krishna district. These assets would be seized, pending further investigations, he said, adding that the police were also investigating into the stock market transactions made by Mr. Rao.

The police had seized the house of Mr. Rao in his native place which was worth Rs. 1 crore. Another 13.47 acres of land with some buildings at Paravada in Visakhapatnam district, bought by Mr. Rao to set up a power project, was also seized. The police requested the RBI, Urban Banks Division, to take up investigation into the financial transactions made by the Krushi Bank, Mr. Dora noted.

The Superintendents of Police of Krishna and West Godavari and the Commissioner of Visakhapatnam had been given `some leads' about the absconding chairman and directors, he said and added that within a day or two they would be arrested.

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