Khammam bank manager held after two-year absconding in Rs 3.5 crore fraud case
A former IndusInd Bank manager from Khammam, absconding for two years, was arrested for embezzling Rs 3.5 crore through fraudulent student loan schemes, misusing customer cheques, and diverting funds into personal accounts and stock market investments.
Khammam: Police have arrested a private sector bank manager who had been absconding for the past two years in a financial fraud worth around Rs 3.5 crore.
The accused, Kongara Ramakrishna, a native of Bhadrachalam in Kothagudem district and who worked as the Manager of IndusInd Bank, Wyra road branch in Khammam was engaged in fraudulent activities while discharging his duties, said ACP (Town) SV Ramanamurthy.
When customers approached him seeking student loans, he would have them open accounts at IndusInd Bank; however, instead of sanctioning loans through the same bank, he would arrange for them loans from Credila, a non-banking financial company (NBFC).
He would then have the commission received from Credila transferred to his wife’s bank account through an entity known as ‘Star Power Agency.’ Furthermore, while facilitating these student loans, he would collect signed blank cheques from the customers.
To fund his investments in the stock market, the accused, without the customers’ knowledge or consent, misappropriated their cheques to transfer funds into his own account, his wife’s account, and the accounts of other individuals for his personal gain.
In this manner, the accused Ramakrishna embezzled approximately Rs 3.5 crore from numerous customers. He subsequently lost a portion of these funds by investing them in the stock market, while utilising the remainder to meet his personal requirements.
Based on a complaint by an aggrieved party, Kethireddy Jayachandra Reddy, a case was registered at Khammam One Town police station with crime number 129/2024, under Sections 409 (criminal breach of trust), 403 (dishonest misappropriation of movable property) and 420 (cheating) of the IPC. The accused was arrested on Monday and remanded to judicial custody, the ACP added.
