Heart Patient’s Inquiry Exposes Loopholes in CM Relief Fund

The modus operandi in both scams was similar, exploiting procedural gaps that allowed fraudsters to use forged documents, impersonate beneficiaries, and encash their cheques. The scam came to light only after a victim from Kodad, Gadde Venkateshwar Rao, lodged a complaint with the police. During his personal inquiry, he discovered that his CMRF cheque had been fraudulently encashed by others.

Venkateshwar Rao had applied for financial assistance for his heart surgery in 2023 under the CMRF but received no updates on his application until 2025. His follow up inquiry eventually led to the unearthing of the scam.

In both cases, people working in the camp offices of former Kodad MLA Bollam Mallaiah Yadav and former Huzurnagar MLA Shanampudi Saidi Reddy were identified as key conspirators.

In the Kodad CMRF cheque fraud, police arrested six persons, including Chedapangu Naresh, a staff member of the Kodad MLA’s office. The group had fraudulently encashed 36 CMRF cheques worth ₹9.3 lakh. Police also seized nine undisbursed cheques from their possession.

The Huzurnagar scam appeared to be larger in scale. Police arrested eight people, including two staff members from the former MLA’s camp office. They seized 44 undisbursed CMRF cheques worth ₹34.5 lakh and recovered ₹7.3 lakh linked to encashed fraudulent cheques. The main accused were identified as Pendem Venkateshwarlu, a computer operator, and Pulindindi Omkar, a personal assistant at the MLA’s office.

In both scams, private staff members of the MLAs’ offices withheld cheques from genuine beneficiaries and encashed them using individuals with similar initials and names. The practice of distributing CMRF cheques through MLA offices gave the fraudsters a major advantage. During the undivided Andhra Pradesh period, cheques were dispatched directly to beneficiaries via India Post, but that system was later discontinued for unknown reasons.

Following these incidents, the CMRF authorities added a “Report a Fraud” feature on the official website — https://cmrf.telangana.gov.in/reportFraud.

Victim Gadde Venkateshwarlu said that though the accused were released on bail, he had not yet received a replacement cheque for the encashed amount. Officials informed him that a new cheque could be issued only after the police filed a charge sheet, which remains pending even after two months.

Speaking to Deccan Chronicle, Suryapet police superintendent K. Narsimha said the cheques involved in the scam were issued between 2019 and November 2023. “The cheques mentioned only the initials and first names of beneficiaries, omitting surnames, which made it easier for fraudsters to encash them,” he explained.

He added that investigations were ongoing and that no evidence had yet emerged linking the two former MLAs. “If any evidence is found, they will be called for inquiry,” he clarified.

The SP appealed to the public to approach the police if they suspect irregularities in their CMRF applications. “Police will verify the matter with the CMRF office and take strict action against anyone involved in fraudulent activities,” he said.

He also reassured new applicants that the current system is more secure, with both the surname and account number of beneficiaries printed on the cheques.

Meanwhile, another form of CMRF-related fraud surfaced in private hospitals across Khammam and Nalgonda districts. The health department cancelled the registration of 10 hospitals in Khammam in April 2025 for misappropriating CMRF funds by submitting fake bills and claiming treatment for patients who were never admitted.

Earlier, in September 2024, CB-CID personnel had arrested two individuals for submitting 19 fake CMRF applications in the names of two hospitals.