Andhra Pradesh: In a significant development in an alleged banking fraud case in Andhra Pradesh, Guntur district police have arrested a chartered accountant accused of misappropriating funds linked to the Guntur District Cooperative Central (GDCC) Bank’s Nallapadu branch. The accused, identified as Kunisetty Siva Naveen, was taken into custody from a bus stop opposite the SBI Bank in Nagarampalem area of Guntur city.
Financial Irregularities Detected at Nallapadu Branch
According to officials, the arrest was made on Thursday, and the accused was produced before a court the following day, where he was remanded to 14 days of judicial custody. The action followed an ongoing investigation into financial irregularities detected in the bank’s operations, which reportedly involved suspicious transactions and alleged diversion of funds.
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The case came under investigation after discrepancies were noticed in internal financial records of the GDCC Bank branch at Nallapadu. Preliminary scrutiny suggested that certain transactions did not align with standard banking procedures, prompting further examination by the district cooperative banking authorities and law enforcement agencies.
Following the findings, the Crime Control Special police team intensified their probe. The arrest operation was carried out under the supervision of CCS Deputy Superintendent of Police B.V. Madhusudana Rao, based on directions from Guntur Superintendent of Police Vakul Jindal. Officials indicated that the investigation is being conducted with a focus on identifying all individuals involved in the suspected misappropriation of funds.
Accounting Entries and Transaction Trails
Sources familiar with the investigation stated that the accused, working in a professional financial capacity, is suspected of playing a key role in manipulating accounting entries and facilitating unauthorized financial movements. However, officials have not yet disclosed the exact scale of the alleged diversion, as forensic audit reports are still being examined.
The arrest has triggered a wider inquiry into the functioning of the cooperative banking system in the region, with investigators looking into whether more individuals were involved in the suspected financial irregularities. Authorities are also verifying transaction trails and examining digital banking records to trace the flow of funds.
Forensic Audit to Trace Fund Diversion
Meanwhile, the accused is currently in judicial custody, and further questioning is expected once custodial permissions are granted. Investigators are also reviewing supporting documents, audit logs, and transaction approvals linked to the GDCC Bank branch.
Banking experts note that such cases often involve complex layering of transactions, making it essential for forensic audits to trace fund movement across multiple accounts. The investigation team is reportedly working with financial specialists to reconstruct the transaction chain and identify possible beneficiaries.
Authorities have assured that strict action will be taken against anyone found involved in the case, regardless of their position or professional background. The focus, they said, remains on ensuring accountability and restoring financial integrity within cooperative banking operations.
