Police have arrested a 1995 Urea scam case accused, M Sambasiva Rao for allegedly cheating a top executive of a Bengaluru-based infrastructure firm of Rs 1.89 crore.
Rao (56) was arrested yesterday on a complaint lodged by the company Managing Director Prashanth Srisailam.
According to police, Rao conspired with other persons in 2013 and caused a wrongful loss of Rs 1.89 crore to Srisailam by entering into an agreement for development of land which was already attached by the CBI in the scam case.
The infamous scam pertains to the Karsan Ltd allegedly cheating the National Fertilisers Ltd (NFL) of Rs 133 crore by not delivering a single bag of the fertiliser it was contracted to supply.
A native of Guntur District in Andhra Pradesh, Rao was an Indian agent for Karsan Ltd in 1995.
During the scam probe, CBI arrested Rao and sent him to Tihar jail. A case is pending for trial at a special CBI court in Delhi. The CBI had attached Rao's land admeasuring over two acre in Nampally in Hyderabad.
In 1996, Rao entered into real estate business and started Sai Sri Projects Pvt Ltd at Begumpet.
In 2013, he contacted Srisailam and entered into a development agreement for the Nampally land, which was already attached by the court, for constructing a mall with multiplex, police said in a release.
According to police, Rao took advance of Rs 1.89 crore from Srisailam after agreeing to share profit in the 70:30 ratio.
The accused was produced before a local court, which remanded him in judicial remand.
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