Rs 140 crore scam: Mudra co-op head held for duping Telangana, AP farmers, youth with fake job offers, investments

Hyderabad: Thippeneni Ramadasappa Naidu, the chairman of Mudra Agriculture Skill Development Multi-State Co-operative Society Limited, was arrested for his alleged participation in a Rs 140 crore financial fraud.

The Crime Investigation Department (CID) of Telangana, which made the arrest, said that the massive financial scam duped thousands across Telangana and Andhra Pradesh.

Scam targeted the vulnerable

The fraud targeted farmers, unemployed youth and daily wage workers. Naidu was apprehended by CID officials from Amaravati, Andhra Pradesh, while his son and co-accused, Thippeneni Sai Kiran, was taken into custody from Hyderabad.

Both were produced before a magistrate in Hyderabad and remanded to judicial custody.

Fraud organised by claiming to provide govt help

Investigations revealed that Ramadasappa Naidu and associates floated the co-operative society by intentionally mimicking the name of the Union Government’s Pradhan Mantri Mudra Yojana, misleading the public into believing it was a government initiative.

The accused promised high interest on deposits and assured permanent government jobs to those who joined as members. He also claimed the society would soon be converted into a government-recognised bank.

These assurances, combined with aggressive newspaper advertisements, especially in Eenadu, promoting 2,000 ‘Government Marketing Supervisor’ jobs, led thousands to invest their savings.

1,600 employees recruited to sell scam

Victims were asked to deposit money under the pretext of purchasing share capital and investment bonds.

Instead of offering fixed deposits, the society retained original certificates of applicants and recruited about 1,600 employees to further solicit deposits from unsuspecting farmers and small traders. Failure to meet deposit targets resulted in deductions from employees’ salaries.

Those who resigned were denied their certificates and returns. Several former employees alleged they were blackmailed with threats of negative press through the society’s own publication, Margadarshi, which falsely linked them with anti-social elements.

Funds diverted to real estate investments

The CID probe revealed that large sums collected from the public were diverted to purchase industrial plots through APIIC Limited in Andhra Pradesh. The fraudulent society had opened around 330 branches and is believed to have cheated over 2,000 victims.

Criminal cases registered across multiple districts

Following multiple complaints, the following cases have been registered against the accused in various police stations across Telangana, including Nallakunta, Kachiguda, Gambhiraopet, Ramayampet, Dubbaka, Vemulawada, Achampet and Atmakur.

All cases are registered under IPC Sections 406 (criminal breach of trust), 420 (cheating), 506 (criminal intimidation), 409 (criminal breach of trust by public servant or banker), and relevant provisions of the Telangana Protection of Depositors of Financial Establishments (PDFE) Act, 1999.

Public advisory from CID

The CID has cautioned the public against falling prey to unregistered financial institutions offering unrealistic returns or making fake claims of government affiliation. Citizens are urged to verify credentials with the Reserve Bank of India (RBI) before investing.

Further investigation is underway to trace the flow of funds, identify other beneficiaries, and recover the misappropriated amounts.