Chittoor city co-op bank chairman cheats bank with fake gold, arrested

Chittoor: Chittoor One-Town Police arrested the Town Co-operative Bank chairman for duping the bank by depositing fake gold to avail loans for his own personal use.

Chittoor DSP K. Eswar Reddy said P. Shanmugham, along with the bank's gold appraiser Dharani Sagar, cheated the bank by mortgaging fake gold ornaments at the Dargah branch. The incident came to light when the bank manager was transferred and was handing over the accounts and assets to the new incumbent.

"The manager, P.R Subrahmanyam, observed that the gold ornaments were fake. Shanmugham, chairman of the bank, along with the gold appraiser Dharani Sagar, created 43 accounts and took gold loans. When the manager asked them to repay the loan, Shanmugham threatened him," said the DSP. Further, the manager had lodged a complaint with the Chittoor I-Town police and the police have registered a case under Section 409, 417, 420, and 506 of the IPC and started an investigation.

Police arrested Shanmugam at Renigunta check post in Chittoor town on 18 February. DSP Eswar Reddy said Shanmugam admitted that he had built two houses for his two families in Chittoor and bought two cars. Fourteen cases were filed against him in Chittoor I-Town, II-Town, Tirupati East police station, and Bangarupalyam police station for cheating youth with false promises of employment and cheque bounce cases. The DSP also said that Shanmugam's victims should come forward and lodge complaints against any such instances.