Krushi Bank chairman finally freed on bail

Hyderabad, Sept 11 :

The former chairman of Krushi Co-operative Bank, Kosaraju Venkateshwar Rao, accused in causing crores of rupees losses to the depositors in 2001 in Andhra Pradesh, was released from Chanchalguda Jail on Friday as the High Court granted bail to him in a case pending against him for alleged contravention of the provisions of Section 46 of the Banking Regulation Act 1949 and the Reserve bank of India Act 1934.

It may be recalled that the Supreme Court recently granted conditional bail to Venkateswar Rao after he furnished sureties, but the prison authorities did not allow him to be released as a case was pending against him for alleged violation of Banking Regulation Act.

The court granted bail to him with a surety of four persons each of them depositing Rs 50 lakh. He would be released on bail only after the orders received by the Nampally court which has to direct the police at the Chanchalguda jail. 

Venkateswara Rao, a resident of Ventrapragada village of Krishna district, was finally nabbed by the Interpol in Bangkok and was brought back to Hyderabad in 2006. Since then, he has been in the Chanchalguda jail.

The police have attached all the properties belonging to Venkateswara Rao and his family, in Krishna district and Hyderabad. The CID which probed into the case handed over the assets to the Nampally court. 

Venkateswara Rao amassed wealth and had purchased houses, land and mango groves across the State. A huge house was constructed at his native, Ventrapragada, which is estimated to cost around Rs 1 crore. The police have sealed the house in August 2001.