9 Directors, Others Arrested in Sneha MACS Case
Police uncover shell firms, benami assets used to siphon funds from 2,500 investors
Visakhapatnam: The city police have arrested nine directors, staff members and benami operators in connection with a massive financial irregularity by Sneha MACS (Sneha Mutually Aided Co-operative Society Ltd).
The company allegedly defrauded over 2,500 depositors who had put their life's savings into the firm.
Police said a sophisticated network of shell companies and benami properties were used by the accused persons to systematically siphon off more than Rs 55 crore in public deposits.
The arrests have been made from various areas of the city. Prime accused, the society’s founder and retired IRS officer, Katikala Shiva Bhagya Rao, was apprehended on Dec 4.
The others in custody are Maturi Srinivasa Rao, Gummadi Manoranjan, Undavalli Srinivasa Rao, Guduru Sita Mahalakshmi, Likhitapudi Visweswara Rao, P Srihari Raju, Guntaka Ranga Rao, Jamparangi Dhana Laxmi and Sajja Dhananjaya Sarath.
Several key conspirators are absconding. Lookout circulars have been issued for Katikala Swarna Latha (president, Sneha MACS), Alladi Punnarao (CEO/director), Gummadi Manoranjan (director), and Katikala Kranthi Kumar (a benami).
The investigation revealed that Sneha MACS, registered in 2008 as a scheduled caste and scheduled tribe cooperative, underwent a name change in 2014 without notifying its original members.
A statutory inquiry under Section 29 of the AP MACS Act, 1995, revealed the sophisticated modus operandi.
Depositor funds were systematically diverted to the personal bank accounts of directors and staff, benami (proxy) companies and shell entities, branches established at Hyderabad and Ponnur, and associated firms with Sneha TV, United Publications, Prudhvi Constructions, Sneha Priya financial services etc.
A sum of approximately Rs 56.10 crore has been identified as recoverable or diverted funds.
The society has 2,504 depositors, with deposits payable totaling around Rs 55.10 crore.
Through coordination with the sub-registrar and tahsildar offices, the police have identified and surveyed multiple properties the accused purchased with the misappropriated funds.
Such properties included, among others, approximately 21.12 acres at Venkannapalem/Rayapurajupeta, Chodavaram mandal (acquired through Prudhvi Constructions and family members). All the identified properties have been geo-tagged, and preliminary restrictions on transactions have been initiated.
Requests have been sent by the police to sub-registrars to freeze transactions and withhold powers of attorney linked to these properties.
