HYDERABAD: A businesswoman from Hyderabad and her chartered accountant have been booked for allegedly defrauding a trader of over ₹19 crore in a deal tied to Telangana’s government-run KCR Kits program.
The Business Deal That Turned Sour
According to police, Sirisha Rani, proprietor of Maa Yarn and Fibers, won a government contract to supply KCR Kits — baby care packages distributed to new mothers under a state welfare initiative. Unable to meet the demand on her own, she allegedly approached Sahan Enterprises, run by the complainant, offering a 1% commission to handle deliveries on her behalf to the Telangana State Medical Services Infrastructure Development Corporation (TSMSIDC). Between 2017 and 2021, the complainant said he supplied the goods as agreed, while the corporation made payments to Sirisha’s firm. But when it came time to settle accounts, the funds allegedly never reached him.
Allegations of Collusion and Suppressed Records
When the complainant sought his dues, he claims Sirisha and her chartered accountant, Armoor Aravind of ABNK & Associates, worked together to obscure financial records. Aravind allegedly delayed issuing audit statements for two years and later produced an ante-dated certificate reflecting only ₹55 lakh as pending — far less than the ₹19.9 crore the complainant says he was owed. The complaint accuses both of “suppressing transactions” and falsifying financial reports to evade payment.
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Police Action and Legal Charges
The Kushaiguda Police have registered a case under Sections 420 (cheating) and 406 (criminal breach of trust) of the Indian Penal Code. Authorities said the case involves two firms and the CA, and that they are gathering documents to verify the flow of funds. Investigators are also examining whether official audit records, bank transfers, and correspondence were manipulated. “We are verifying the nature of the transactions and the involvement of each party,” a police official said.
Broader Concerns Over Business Ethics and Oversight
Experts say that if proven true, the misuse of audit powers and falsified certifications could invite disciplinary action from accounting regulators as well. While the investigation continues, the accused have not yet publicly responded. Legal experts note that both sides may present contrasting versions of the financial arrangement once the matter reaches court.
