Krushi Bank properties attached

By Our Staff Reporter

HYDERABAD, SEPT. 24. The State Government on Monday issued orders for the attachment of the properties of the Krushi Cooperative Urban Bank here under the A.P. Protection of Financial Establishment Act 1999.

This follows a recommendation made by the Additional Director- General of Police, CID, in a report submitted to the Government. A press release from the DGP's office said that Krushi Bank, represented by its Chairman, Mr. K. Venkateswara Rao, Vice- Chairman, Mr. K. Venugopal, other directors and staff had failed to repay amounts to depositors running into Rs. 31 crores and committed defaults.

The Additional DGP (CID) has requested the Government to pass an ad-interim order under the above mentioned law after ascertaining that there was no chance of the accused returning the amounts to depositors. The police were acting on a complaint filed by Dr. M.V. Kumar and other depositors.

Notices were served on 14 banks which had three accounts in the name of the absconding Chairman of the bank, K. Venkateswara Rao. There was one account in the name of the software company floated by him - Halycon Softech Ltd. - and 10 other accounts in the name of Krushi Bank. All these accounts amount to a little more than Rs. 1.78 crores. The properties owned by Venkateswara Rao, his brother Venugopal and other family members have been detailed and attached. The list includes those properties which the accused had sold to other private parties. These were situated at G.S. Chambers, Plot. No.75, Sri Nagarjuna Coop Housing Society Ltd., Nagarjuna Hills, Punjagutta, and his parental property at Akarshana Apartments, Seventh Avenue, Road No.3, Banjara Hills. There are as many as 20 plots of different sizes, valued at nearly Rs. 1.26 crores. The Krushi Bank Chairman had sold nine plots to seven different parties which are valued at Rs. 58.79 lakhs. The Government had also attached properties owned by K. Venugopal worth nearly Rs. 1.17 crores including 18.46 acres of land valued at Rs. 14.5 lakhs, a house valued at Rs. 1 crore and a cattle shed worth at Rs.2 lakh at the Ventrapragada village, Peddaparupudi mandal in Krishna district.

More properties owned by Venugopal - five tracts of land at Gollapalli village, Nuzivedu mandal, in Krishna district, totaling nearly Rs. 20 lakhs - had been attached. It also includes four plots worth Rs. 16 lakhs sold away to different private parties. The other seized land was 16.07 acres situated at Parwada, near Visakhapatnam, where Venkateswara Rao had invested Rs. 86.65 lakhs.

Other than these properties, the Government had seized 12 vehicles, including two Mercedes Benz cars. Assorted goods, air- conditioners, computers, vacuum cleaners, furniture, etc., were among those attached, the release added.

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