Chennai cops book fraud case against Nellore Mayor

Nellore: Nellore Mayor Sk Abdul Aziz landed in trouble with a cheating case booked against his firm in Chennai city. Prasad Gempex, a wing of Anand Cine Services owned by Gemini Group, had lodged a complained with the Chennai’s Central Crime Branch (CCB) against the Mayor and his firm members for utilising their share money not for the intended purpose.

The CCB had booked cheating case with crime number 431 of 2017 under 406, 420, and 506 sections read with IPC 120-B on December 1 as per the complaint lodged.

According to the company sources, Mayor and his family members were running Star Agro Marine Exports Private Limited at Devispet in the district and they asked Prasad Gempex to invest in their firm for intensifying the aqua trade. Mayor Aziz’s brother and Corporator Jaleel, Anil Koneru and two others were also partners in the firm.

They contacted through Anil Koneru inviting investment in the Agro company though it was running with huge losses. Dr Anil Koneru had allegedly committed huge financial frauds in India and abroad. Prasad Gempex had cleared Rs 6 crore debts of the company by paying to the farmers and invested Rs 36 crore for resuming the business but the Agro Company had diverted funds to their Dubai based company violating the partnership.

As they failed to crosscheck antecedents of the Star Agro Company, they invested Rs 42 crore in phased manner within a year through bank transactions. In fact, the Agro company had to involve the investor while taking business decisions but they simply utilised the money and started own trade for exporting the products to the abroad.

They deposited the amount in their own bank accounts after transactions were over and the Gempex raised doubts on the financial activities of the Star Aqua and started questioning. Allegedly, the Mayor and his brother corporator have warned the investor not to poke their nose in the company affairs and threatened with dire consequences.

Finally, company’s CEO Puttu Venkata Ramana Murthy had lodged the complaint with the CCB in Chennai for taking action against the Mayor and other partners. Verifying the facts, the Chennai cops had booked the case. Further, considering huge debts of the company from various banks worth Rs 172 crore by 2015, the Serious Fraud Investigation Office (SFIO) reportedly asked the CBI to check financial activities of the Agro Company.

Team of auditors from the Prasad Gempex also visited USA, UK and Hong Kong for financial status of the company where they found huge debts to the company. “Aziz, Anil Koneru and Jaleel had contacted Akkineni Manohar Prasad, promoter of our company, in August 2016 for investing the money in their aqua group.

But, observing the trend of utilisation, we approached the Chennai City Commissioner on October 31 and they booked cases on December 1 getting confirmation on the misdeeds of the Agro Company. Even though, we are 80 per cent stakeholders but they failed to respect the deed,” said the Puttu Venkata Ramana Murthy, talking to The Hans India.

According to sources, Mayor Aziz and his partners tried to get anticipatory bail from the Madras High Court, but they failed and now are trying from the High Court of Hyderabad. Further, Nellore SP PHD Ramakrishna said no one had contacted him to arrest the Mayor and his partners of the company in connection with the case booked in Chennai.

By P V Prasad