Minority finance scam to be reopened

Published Jan 8, 2014, 3:29 pm IST
Updated Mar 19, 2019, 5:20 am IST
CID gives a clean chit to the then GM and accounts officer of the APMFC in deposit scam.

Hyderabad: The Crime Investigation Department has given a clean chit to the then general manager and the accounts officer of the AP Minority Finance Corporation in the multi-crore fixed deposit scam.

The CID has informed the corporation that oral and documentary evidence collected during the course of investigation did not reveal criminal involvement of Md. Liyakat Ali, general manager, and Sk Ahmed Ali, accounts officer.


Both officials had been placed under suspension after the fixed deposit scam had surfaced in October 2012.

In a communication to the present managing director of APSMFC, additional director general of CID informed that investigation had revealed that only former managing director Mohd. Ilyas Rizvi, IFS, was responsible for the scam.

He had colluded with private individuals V.K. Sai Kumar, Nanduri Venkata Ramana, Naveen Sagar and Bondada Kesava Rao and facilitated fraudulent withdrawals of Rs 59 crore of the corporation, the CID said in its letter.


According to the letter, the accused (private parties) had confessed that they had paid Rs 80 lakh to Rizvi as commission for making fixed deposits of Rs 80.01 crore in Vijaya Bank.

Letter to current MD cleared air

Hyderabad: A letter to the present managing director of APSMFC revealed that Md. Liyakat Ali, general manager, and Sk. Ahmed Ali, accounts officer, had followed the instructions of former managing director Mohd. Ilyas Rizvi as he was their boss at that time and there was no criminal involvement on their part.

The CID opined that they were liable for departmental action but not for criminal prosecution.


Surprised by the findings of the CID, Mohd. Hashim Shariff, the current MD of the Corporation, has written back to the CID to re-investigate the case.

The MD in his letter said that when allegations against Rizvi were established, the role of Liyakat Ali and Ahmed Ali could not be overlooked or ignored, as they had been instrumental in preparing cheques and letters addressed to various banks allowing private persons to make fixed deposits on behalf of the corporation.

The corporation informed that the CID could not ignore that the crucial fact they were joint signatories along with Rizvi.


The managing director could not open bank accounts without their signatures.

The CID was also informed that the trio had opened 28 bank accounts in 16 different banks and made fixed deposits against the rules of the corporation.

The claim of Liyakat Ali and Ahmed Ali that they had only obeyed the orders of their superior could not be a ground to discharge them from the case.

They had failed in performing their primary duty to bring the fraudulent instructions of their boss to the notice of the government.

The corporation also informed the CID that the conclusion of the probe was contrary to the findings of the internal auditors and a committee appointed by the government.


Location: Andhra Pradesh