The Cooperative Crime Squad (CCS) has booked a former branch manager for his alleged role in a massive ₹249 crore fraud involving a local cooperative society. The case was triggered by complaints of large-scale embezzlement, fake loans, and misuse of funds that left many depositors in distress.
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The Alleged Scheme
Investigations suggest the accused used his position to sanction bogus loans, withdraw funds against non-existent accounts, and misappropriate money through intermediaries. Some loans were purportedly given to firms that had no real operations, while other funds went into shell entities linked to him or his associates. Internal audits revealed large discrepancies in books, missing vouchers, and forged signatures.
Arrest and CCS Action
The former manager was confronted with evidence from bank records, transaction trails, and witness statements, prompting the CCS to formally charge him under sections related to cheating, criminal breach of trust, and money laundering. Law enforcement officials have seized documents, digital evidence, and assets tied to the alleged crime to strengthen their case.
Implications for Cooperative Sector
This is one of the biggest frauds recorded in Telangana’s cooperative movement. Observers warn it exposes structural weaknesses in oversight, auditing, and accountability in cooperative institutions, which often lack robust internal controls. Stakeholders say this case could prompt reforms in cooperative governance and stricter regulatory supervision across the sector.
