Karvy Yugandhar roams around freely, Cyberabad police look the other way
Sources in the police department told that there were indications about Rao turning approver and providing inside information about the scam
HYDERABAD: M. Yugandhara Rao, co-founder of Karvy Group and a co-accused in the alleged defrauding of ICICI Bank to the tune of Rs 563 crore, is roaming around freely as the Cyberabad police is yet to take firm action on the complaint it received from the bank.
The police focus, it appears, is more on the other co-founder C. Parthasarathy, who is in judicial remand following his arrest by the Central Crime Station, Hyderabad police, rather than investigating the role of Yugandhar in the scam. Even a week after ICICI Bank complained against Rao, cops are yet to summon him, leave alone arresting him on charges of cheating and criminal breach of trust as happened in the case of Parthasarathy.
Hyderabad police claimed that Parthasarathy could tamper with evidence if he was not taken into custody, but Cyberabad police preferred to look the other way with regard to Rao. The dual standards being adopted by the police has left business circles puzzled.
Sources in the police department told Deccan Chronicle that there were indications about Rao turning approver and providing inside information about the scam, lending credence to the rumours that complaints to several investigating agencies on the financial fraud committed by the group promoters was an insider job. Police have been verifying the claims that Rao is no more with Karvy and that he has floated his own company, sources said.
“It is impossible that frauds have taken place without the knowledge or consent of Rao,” said a business analyst, adding that Parthsarathy is innocent if his co-founder is.
Rao was known for his proximity to a former chief minister and several bureaucrats some of whom were said to have made huge investments in stocks through the accused.
Karvy was pampered by the Chandrababu Naidu regime post-bifurcation which made several efforts to award income-generating contracts to the group which by then had plunged into a financial mess.
Significantly, the Y.S. Jagan Mohan Reddy government which went all out against the previous administration over the allotment of lands in the proposed Amaravati capital left the Karvy Group off the hook. Sources said at least two MPs lobbied with the chief minister to spare Parthasarathy.