Depositors of Krushi Bank will get a part of their money back after a long wait.
According to A Siva Narayana, additional director general of Police - Crime Investigation Department, the first additional metropolitan sessions judge has passed orders to this effect on the petition filed by it. The police said 878 depositors would be benefitted with the decision of the court.
Nine years ago, Krushi Bank managing director K Venkateshwara Rao defaulted on the payments to depositors. A case was registered (under Section 406 and 420 IPC) at Mahankali police station here. It was transferred to the CID for further investigation.
The CID had filed a chargesheet under Section 3 of the AP Protection Depositors Financial Establishment Act 1999. During the investigation, the properties acquired by Rao and others from and out of the deposits collected were identified and were placed before the government, which ordered for attaching the same.
Certain properties of Rao were disposed of in public by the metropolitan sessions judge court. An amount of Rs 10.67 crore was realised, which was kept in various fixed deposits. The liquidator of Krushi Bank furnished the details of 878 depositors and the amount payable to them was Rs 13.73 crore.
Following this, the CID filed a petition before the court for disbursement of the available amount in the court to the depositors. The court allowed the petition and passed orders to disburse the amount to the depositors.
The amount can be distributed to clear 77.7 per cent of depositors, according to a press release.
