Eight Held In Rs 12.33-Crore Sugarcane Weighment Fraud In Vijayapura

Vijayapura: Vijayapura police have unearthed an alleged Rs 12.33-crore sugarcane weighment fraud at Nandi Sahakari Sakkare Karkhane Niyamit in Krishna Nagar, arresting eight persons in connection with the case.

Superintendent of Police Laxman Nimbargi told reporters on Tuesday that police had recovered or frozen over Rs 11.32 crore allegedly siphoned off through the racket.

Nimbargi said that the case was registered at the Babaleshwar Police Station on Feb 12 following a complaint by Ashok Tippareddy, General Manager of Nandi Sugars Limited.

According to the complaint, Dhareppa Dundappa Navi, who worked in the sugarcane weighing section of the factory, along with several others, allegedly committed large-scale financial fraud during six crushing seasons from 2020-21 to 2025-26.

The accused allegedly generated bogus weighment records and fake bills in the names of different farmers by fraudulently recording sugarcane transactions. Based on these fabricated records, they transferred Rs 1,87,18,324 into bank accounts opened in the names of different persons and misappropriated the money, thereby cheating the sugar factory, it was alleged.

Treating the case as a priority, the SP constituted a special investigation team.

During the investigation, police scrutinised records maintained at the sugar factory's weighment centre. The inquiry led to the detention and questioning of Dundappa Navi, a resident of Bidari village in Jamkhandi taluk of Bagalkote district, who worked in the factory's sugarcane weighment section.

The other accused are Bheerappa Basappa Gadadar and Yallappa Basappa Gadadar, both of Yaragatti, Prakash Siddaling Gaddi, Parmanand Pundalik Gaddi, Mahadev Siddaling Kamble alias Singe and Balappa Pandu Chopade, all residents of Alakanur in Raybag taluk of Belagavi district, and Prabhakar of Ugar in Raybag taluk.

According to police, the accused fraudulently generated records for 34,490.699 metric tonnes of sugarcane and diverted Rs 12,33,22,793 into 91 bank accounts opened in the names of different persons, causing a corresponding loss to the sugar factory.

The investigation further revealed that the accused had allegedly adopted a similar modus operandi at sugar factories in Belagavi and Bagalkote districts, where criminal cases had earlier been registered against them.

Bheerappa Gadadar had secured employment in the weighment section of the factory and allegedly won the confidence of field officers and token operators. Using fake weighment tokens linked to genuine sugarcane-laden tractors entering the factory, the accused allegedly diverted payments into bank accounts controlled by them.

Dhareppa Navi later became aware of the operation and was allegedly offered a share of the proceeds. After Bheerappa left the factory in 2024, the remaining accused allegedly approached Dhareppa and informed him that Bheerappa had earlier been receiving a share of the illegal proceeds. They allegedly offered Dhareppa an even larger share if he continued the operation.

During the investigation, police recovered Rs 21 lakh in cash from Dhareppa and seized Rs 4.80 crore from his bank account. Another Rs 5.48 crore transferred to other bank accounts was also seized, while Rs 82.07 lakh lying in various accounts was frozen.

In all, police said they had recovered or frozen Rs 11.32 crore in connection with the fraud.

The special team constituted under the supervision of Additional Superintendent of Police Ramangouda A Hatti and Deputy Superintendent of Police TS Sulpi was headed by Vijayapura Rural Circle Inspector Ramesh Avaji.

The team comprised PSI Basanagouda BM (Law and Order), PSI SR Hiregan (Crime), head constables LS Hiregoudar, Suresh Adaki, Pundalik S Biradar, Eranna Dalavai and NN Pujar, police constables Shrishail Umanabadi, SS Kakkalameli, Ravi H Sanagonda, Rajesh C Patil, Anand Talwar, BN Logavi and GH Kumbar, and armed police constables Mallu Kanamuchanal and Sanju L Hosamani.

All eight accused have been taken into custody, while further investigation is underway to ascertain whether others were involved. Vijayapura Superintendent of Police Laxman Nimbargi commended the investigation team and presented commendation certificates to the officers and personnel for cracking the case within a short period.