A chartered accountant, K.V. Subba Reddy, has been arrested in Guntur, Andhra Pradesh, in connection with a fraud case involving the Guntur District Cooperative Central Bank (GDCCB). The CID (Crime Investigation Department) made the arrest following a prolonged investigation into alleged irregularities within the bank.
The fraud centers around fraudulent loan disbursements made between 2018 and 2022. Subba Reddy, while working as an auditor for the GDCCB, allegedly colluded with bank officials and borrowers to facilitate the illegal sanctioning of loans. These loans were obtained using fabricated documents and without proper verification of beneficiaries or collateral.
Investigations revealed that approximately ₹6.8 crore was fraudulently disbursed through this scheme. The CID has so far identified 28 beneficiaries who illegally availed of these loans. Several bank officials are already under suspension and facing departmental inquiries.
Subba Reddy’s role was crucial in overlooking and legitimizing the fraudulent transactions during the audit process. He is accused of manipulating audit reports to conceal the irregularities and enabling the continuation of the fraud. The CID believes his complicity was essential for the scheme to operate undetected for an extended period.
The CID has been actively pursuing the case, freezing bank accounts linked to the fraud and attaching properties belonging to the accused. This arrest is considered a significant breakthrough in the investigation. Further investigations are underway to identify other individuals involved, including potentially more bank employees and beneficiaries. The CID aims to recover the misappropriated funds and ensure those responsible are brought to justice. The case highlights vulnerabilities in the banking system and the importance of robust internal controls and diligent auditing practices.
