The managing director of a private firm and his associate have been arrested for allegedly duping various nationalised banks, car showrooms and land owners to the tune of Rs 15 crore, a senior police officer said today.
Karvendula Vijaya Kumar Chanakya, Managing Director of E-store India Pvt Ltd, and his associate Murthy Addala were arrested on Friday at Banjara Hills here on charge of cheating and indulging in fraud to the tune of over Rs 15 crore, Detective Department Deputy Commissioner of Police J. Sathyanarayana said.
As Hyderabad police were on a look out for Chanakya for his alleged involvement in several cheating cases, he had shifted base to Bengaluru a few months ago and hatched a plot to cheat Canada-based RIM (makers of Blackberry cell phones) to the tune of another Rs 15 crore to secure its South India dealership, the senior police officer alleged.
A computer science engineer Chanakya, who started his career as a systems administrator in erstwhile Satyam Computers, quit the IT firm and started his own firm Digital Systems.
"Chanakya's spree of cheating cases started with securing a loan of Rs 8 crore from IndusInd Bank by pledging his house in Jubilee Hills on the pretext of developing firm's business. But he misappropriated the loan amount by investing the money in real estate and suffered huge losses," the DCP explained.
Being a qualified computer engineer, Chanakya grasped how corporate transactions are executed and formalities involved in securing loans from banks. By maintaining a lavish lifestyle, Chanakya used to impress people and trap them, the police officer said.
"Chanakya even used to host extravagant parties for bank officials to clear his loan applications without proper verification of documents and in some cases, he also used fabricated documents to avail loans," Sathyanarayana alleged.
He managed to get loans from prominent banks like SBI, State Bank of Travancore, Punjab National Bank and Vijaya Bank among others.
The Central Crime Station (CCS)— a wing of Hyderabad Police is probing the complicity of officials of different banks in aiding and abetting the accused, Sathyanarayana said.
Police seized as many as nine cars besides various rubber stamps, credit cards, cheque books from Chanakya's possession.
