"Dr Subba Rao is the second accused in the case after Ramana alias Raman Balla who was arrested on August 30. Police examined around 25 victims and all of them said that Rao had interviewed them and assured to provide jobs in VIMS.
"The youths paid money to Balla after Rao had given them assurance (for providing jobs)," said DCP (zone I), law and order, CM Thrivikrama Varma.
The alleged fraud came to light on August 20 when some youths lodged a complaint against Balla, founder of a software development and training firm, at Dwarakanagar police station.
According to police, around 40 unemployed youths from three coastal districts alleged in their complaint that Balla had collected Rs 4.5 lakh from one candidate and varying sums from others by assuring them jobs as ward boys, clerks and laboratory technicians in VIMS.
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Police said some of the youths were even "interviewed" by Rao at a private hospital.
Rao has already denied the allegations, but conceded that he had casually met Balla and some students of the latter's 'C Soft Technologies' at the private hospital.
Police also collected photographs of Rao showing him posing with Balla from the former's office today, DCP said.