Hyderabad: Dark NSquare implodes, director Naveen Reddy arrested for Rs. 38.50 Cr fraud

Hyderabad: Police have arrested Naveen Reddy, Director of Dark NSquare, for misappropriating Rs. 38.50 crore. Police said Reddy used the money to purchase villas and lavish cars, clear debts, and invest in cinema. Police have obtained his custody for three days.

Police said complainant Sarin Reddy and the accused Naveen Reddy started a joint venture in the name of Dark Sark N Square In March 2021. In the course of business, they acquired lands in and around Hyderabad city. The bank accounts of the joint venture were looked after by Naveen Reddy.

Police said Naveen Reddy without consent and knowledge of Sarin Reddy created a fake board meeting resolution by forging the signature of Sarin Reddy. Police said he transferred 7.30 acres of land initially to his friend Kalyan Reddy in August 2022. Two months later, Kalyan Reddy transferred the same land to Upender Reddy (paternal uncle of Naveen Reddy).

The company had also purchased land from Michi Srinivasa Reddy by spending Rs 9 crore to construct villas, However, Naveen Reddy sold out the villas to his customers without the knowledge of Sarin Reddy, police said.

Likewise Naveen Reddy had transferred 6 acres of company land. The land was purchased by the company spending Rs. 12 crore. Naveen Reddy also shifted the office from Jubilee Hills to Gachibowli in December 2021. He also shifted entire accounts books, computers, etc. to the new premises.

Police said In March 2022, Sarin Reddy observed a lot of discrepancies in the accounts. When questioned, Naveen Reddy did not reply and threatened him with dire consequences. “During the investigation, it was revealed that Naveen Reddy misappropriated the company funds to the tune of Rs. 38.50 crore approximately. With which Naveen Reddy purchased villas, cleared his debts, invested in cinema and, purchased of lavish cars,” police said.