Bank Fraud

Guntur Police Uncover Rs 5 Crore Loan Scam, Arrest 11 Including Former Officials


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In a major breakthrough, the police in Guntur district have arrested 11 individuals, including two former tahsildars, two Village Revenue Officers (VROs), and a former bank manager, for their involvement in a massive Rs 5 crore scam at the Guntur District Cooperative Central Bank (GDCC).

According to Guntur District Superintendent of Police (SP) Satish Kumar, the case came to light after Giri Lingeswara Rao, a resident of Veerayapalem village in Prakasam district, discovered that a loan of Rs 6 lakh had been taken in his name from the Primary Agriculture Cooperative Credit Society (PACS) in Chinnakondrupadu. Rao filed a complaint with the Prathipadu Police Station on October 18, 2024.

During the investigation, the police uncovered a 15-year-long scheme in which politicians and criminals, with the help of government employees, had been creating fake documents to secure loans using fraudulent Pattadar passbooks. These fake loans were later waived under the government’s crop loan waiver scheme.

The police identified 30 fake farmers who had taken loans in the names of real farmers. The accused had fabricated various documents, including fake Pattadar passbooks, IDs, Aadhaar cards, PAN cards, and even fabricated records on the webland system. After obtaining the loans, they erased the fake data from the system.

Among those arrested were Mandru Seetha Ramanajaneyulu, Avula Triupathi Reddy, Yogaiah, Tirumella Venkata Sandeep, Bollinedi Ravikumar, and several former GDCC Bank officials and tahsildars. The accused were involved in the creation of fake documents and the illegal disbursement of loans.

On Wednesday, the police arrested the following individuals: Somepalli Nagaraju, Jillamudi Prabhakar, Tiruveedhula Yogaiah, M Seetharamanjaneyulu, Sunkara Venkateswarulu, T Venkata Sandeep Kumar, N Srinivasa Rao, M Nageswara Rao, B Lakshminarayana, Tirupathi Reddy, and Garnapudi Levi, along with a retired tahsildar.

SP Satish Kumar praised the efforts of Prathipadu Circle Inspector Srinivasa Rao for his role in bringing the perpetrators to justice.

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