Kakinada: Kakinada Two Town police have arrested Karthikeya Mutually Aided Cooperative Society chairman Kodi Veera Venkata Satyanarayana in Mancherial town of Telangana.
Satyanarayana had floated the society 20 years ago. He appointed a woman from Nagaram village in Mamidikuduru mandal of Konaseema district as manager of the society. The manager and her husband mobilised the highest deposits from Nagaram village offering a high interest of 15 per dent
Subsequently, Satyanarayana promoted the manager to a director of the society, which paid interest to depositors till two years ago. Subsequently, when depositors sought their money on maturity of their deposits, the society did not release these amounts.
Following a complaint by depositors, district cooperative officer (DCO) B. Durga Prasad appointed N.V.S. Durga Prasad as an inquiry officer. Inquiry revealed that Rs 25 crore had been raised as deposits. The DCO issued orders attaching nearly Rs 12 crore worth of assets belonging to the society.
Subsequently, inquiry officer Durga Prasad filed a complaint with Kakinada Two Town police against 14 society directors.
Following this, police arrested all 14, including chairman Satyanarayana, his wife, and two sons, who are society directors.
On Sunday, police presented Satyanarayana before the Principal Sessions Judge at Rajamahendravaram for remand.
