ED files chargesheet against retired IFS officer in APWCFC 'fraud' case

Hyderabad: A chargesheet under the anti-money laundering law has been filed against a retired Indian Forest Service (IFS) officer in connection with an alleged Rs 23.46 crore fraud at the Andhra Pradesh Women’s Cooperative Finance Corporation (APWCFC), officials said.

A special Prevention of Money Laundering Act (PMLA) court in Hyderabad took cognisance of the prosecution complaint against the officer named Akula Kishan and others on August 13, the Enforcement Directorate (ED) said on Thursday.

The officer could not be contacted immediately for a comment on the ED charges levelled against him.

The money laundering case stems from an FIR registered by the CID Police station in Hyderabad.

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The case pertains to alleged violations when Kishan, while holding an official position in the corporation, allegedly colluded with other individuals and private entities to “misappropriate” funds from the APWCFC, the central agency claimed.

The alleged fraudulent activities, which occurred between April 2005 and 2008, involved “irregular” appointments, “unauthorised” land transactions, and procedural violations to facilitate irregular purchases.

The officer is also alleged to have misused APWCFC properties by leasing or renting portions of its buildings, withdrawing large sums of money “dishonestly”, and causing financial losses to the tune of Rs 23.46 crore to the corporation and the government exchequer, according to the ED.

It said the retired IFS officer made “illegal” appointments and promotions “without” requisite approvals to secure the loyalty of certain individuals and later utilised them to disburse Rs 15.39 crore loans to ineligible, related persons and benamis without proper sureties or documentation, often based on handwritten notes under the Indiramma Mahila Upadi Pathakam (IMUP) loan programme.

Kishan, along with CEO V Santosh Kumar, opened “secret” bank accounts, executed fake agreements, collected Rs 7.5 crore in the name of APWCFC, and “diverted” the funds to personal accounts and associates, the agency alleged.

The officer is also accused of purchasing computers and other peripherals apart from vehicles without tenders at “inflated” rates, thereby causing monetary gain to himself, the ED said.

The agency earlier attached assets worth Rs 1.26 as part of its investigation.

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