Rs 1200 crore chit fund scam: Odisha police arrest YSRC leader Malla Vijaya Prasad
Odisha police have arrested former MLA and Chairman of Andhra Pradesh Education and Welfare Development Corporation Malla Vijaya Prasad for his alleged involvement in the Vizag chit fund case.
By Newsmeter Network Published on 7 Sep 2021 3:50 AM GMT
Visakhapatnam: Odisha police have arrested former MLA and Chairman of Andhra Pradesh Education and Welfare Development Corporation Malla Vijaya Prasad for his alleged involvement in the Vizag chit fund case.
Economic Offence Wing, CID, Crime Branch, Bhubaneswar of Odisha sought the assistance of Vizag city police for arresting Malla Vijaya Prasad. Odisha police arrested the YSRC leader who is being produced before the concerned magistrate.
Odisha police registered a case under section 420, 406, 467, 468, 471, and 120 (B) of IPC r/w Section 4,5 and 6 of PC and MC Schemes (Banning Act) 1978 and Section 6 of OPID Act 2011 in connection with a chit fund fraud in 2019.
Malla Vijaya Prasad had won assembly polls in 2009 from Visakha West Constituency on Congress Party ticket. In the 2019 elections, Vijaya Prasad contested on the YSR Congress Party ticket from Visakha West Constituency, but lost. Malla Vijaya Prasad was recently appointed as Chairman of AP Education and Welfare Infrastructure Development Corporation.
There are allegations that Vijaya Prasad was involved in Rs 1200 crore scam in which he cheated depositors of Andhra Pradesh, Odisha, Chhattisgarh, and Telangana.
TDP and Congress Party accused YSRC Party chief YS Jagan Mohan Reddy for giving a ticket to Vijaya Prasad. Opposition parties said that Vijaya Prasad committed the fraud in his capacity as the Managing Director of Private firm Welfare Building and Estate Limited.
CBI carried out searches against 33 private firms and group of companies across five States in connection with two cases of alleged chit fund scams involving hundreds of crores in 2016.
CBI conducted searches on the residential and official premises of the suspects, including Malla Vijaya Prasad. During the searches, the CBI seized Rs. 44.9 lakh in cash from the residence of Malla Vijaya Prasad.
