Officials Tell Banks to Follow Rules in Jubilee Hills Club Case
Complaints of fund misappropriation and quorum issues freeze society’s bank operations
Hyderabad: After several complaints were lodged about misappropriation of funds by the Jubilee Hills Club Society’s Governing Council, the registration and stamps department (society) has requested ICICI Bank and Bank of Baroda to take appropriate action related to the bank accounts of the society.
The instruction was issued following complaints by some of its members, including Jyothi Prasad and others, with Central Crime Station (CCS) Basheerbagh against club president K. Surendar Reddy and secretary Kilaru Rajeswara Rao, accusing them of resorting to manipulations and misappropriation of funds.
In the complaint to CCS, they said the president and the secretary have paid Rs 20 crore to Safe Yards — which is owned by the friend of secretary Rajeswara Rao —for the construction/renovation of the second and third floor, as against its value of work, which is Rs 5 crore. In their complaint, they also claimed that the amount was spent without any tender process and GHMC permissions. Advances were given to the contractor without following any proper procedures, which were red-flagged by the internal auditor.
The complaint also claimed that the president and the secretary did not deposit in the club bank accounts over Rs 1 crore, which was realised from the sale of Tombola tickets in January 2025 and was allegedly shared between Surender Reddy and Rajeswara Rao. They also alleged that around 20 memberships were given without following norms causing a financial loss of Rs 1.2 crore to the club.
Another reason for freezing the operations of two bank accounts is a lack of quorum at the club’s governing council meetings after nine out of 15 members resigned from the council. As only six members remain in the governing council, its meetings do not fulfil the requirement of quorum. Similarly, with the majority of its members resigning, the governing council itself stands automatically dissolved and immediate elections have to be conducted to elect a fresh body.
The eight members of the governing council resigned in protest against the suspension of vice-president M.R.C. Naidu. The former treasurer was also disallowed from attending the annual general body meeting on June 22.
