The CID teams caught the suspect who was running away from the police in the Krushi Bank scam that created a sensation in the united Andhra Pradesh. CID officials of Telangana have arrested bank director Kahigala Sridhar, who is on the run after being released on bail in the Krushi Bank scam that has sunk thousands of customers.
Krushi Bank is one of the consecutive bank frauds that came to light in Hyderabad 22 years ago. Deposits were collected from the clients and sunk full. In this case, the CID police arrested Krushi Co-operative Urban Bank director Kahijala Sridhar.
The police said that Sridhar, who is A-3 in this case, is absconding without attending the court proceedings. The Nampally court has issued a non-bailable warrant against Sridhar who is absconding. Sridhar was arrested in Palakollu of West Godavari district by special teams of CID. CID chief Mahesh Bhagwat said that after producing the accused in Nampally court, he was sent to judicial remand. Mahesh Bhagwat congratulated the special team that arrested Sridhar who was absconding.
Chairman of Krushi Co-operative Urban Bank Limited, MD Kosaraju Venkateswara Rao, other directors and employees looted money amounting to Rs 36.37 crores and closed the bank. MV Kumar and other clients lodged a complaint at the Mahankali Police Station on 11 August 2001. Initially, the Mahankali police registered a case but later it was transferred to the CID due to the seriousness of the case. The main accused in this case are still in jail.
According to the complaint of the victims, chairman of the bank, MD Kosaraju Venkateswara Rao, who is abroad, was arrested and the properties were taken over. One of the directors, Kahigala Sridhar, has been absconding since then without attending the trial. Non-bailable warrants are pending against him. A team headed by CID SP Ramireddy has recently traced the whereabouts. He was found to be in Srirampet, Palakollu, West Godavari district and arrested on Saturday.