Vishkhapatnam: Three years of investigation later, the CID, on Wednesday, filed its first chargesheet in the multicrore rupee scam involving Bommarillu Farms and Villas India Ltd. The CID has named 10 accused in the charge sheet which included Managing Director of Bommarillu Farms and Villas India Ltd, Rayala Raja Rao, 45, and his wife Rayala Swathi Raja, 40, director of the firm and his brother Rayala Laxminarayana and seven others who are either directors or managers in the multi-winged organisation.
Various schemes were introduced to the public under Bommarillu Farms and Villas India Ltd, through more than 3,000 agents promising the investors hefty returns. The deposits were collected by violating the RBI norms with fraudulent and dishonest intention.
Rayala Raja Rao had also started Bommarillu Foods and Consumer Products, Bommarillu Constructions and Bommarillu Cinema. The scam, which was initially investigated by Vizag city police, was later handed over to the CID.
Inspector of Police (CID), M. Butchi Raju, who is the investigating officer of the case, said that Bommarillu Farms had collected Rs 95.11 crore from 1.46 lakh depositors in Andhra Pradesh, Telangana and neighbouring Odisha. The firm has invested the deposits in real-estate and other sectors. They returned Rs 47.44 crore to the depositors and siphoned off another Rs 47.67 crore.
The first case against Bommarillu Farms was registered with Three-Town police station on January 9, 2014, following the complaint by one duped investor Bantubilli Indumathi. Some directors and managers of the firm were arrested and later released on bail. In the last three years, the government has issued eight orders to the CID to attach the properties of Bommarillu Farms. “So far, the CID has attached properties in Andhra Pradesh and Telangana worth over Rs 50 crore. Our investigation has revealed that Bommarillu Farms has to repay Rs 48 crore to depositors,” said inspector Raju.
The case against Bommarillu Farms has been filed under sections 420, 403, 406 and 120 (B) of IPC and Section 5 of AP Protection of Depositors and Finance Establishment Act-1999 and Sections 4,5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act 1978.
