ACB arrests former Andhra mines director in ₹2 crore fraud case
The agency also named six other accused, including representatives of various private mining firms that benefited from the decisions of Reddy
The anti-corruption bureau (ACB) of Andhra Pradesh police on Friday arrested former director of state mines and geology department VG Venkat Reddy in connection with the large-scale irregularities in the department during his tenure in the last five years, officials familiar with the matter said.
A senior official of the Andhra police said Venkat Reddy was arrested in the wee hours of Friday in Hyderabad and was brought to Vijayawada in the morning. He was produced before the local ACB court, which remanded him to judicial custody for 14 days.
The ACB named Venkat Reddy as accused no. 1 in the case of financial irregularities that caused a loss of ₹2,566 crore to the state exchequer, the official said. The agency also named six other accused, including representatives of various private mining firms that benefited from the decisions of Reddy.
The official further said that the ACB sleuths had seized some incriminating documents and hard discs from Reddy at his Hyderabad house at the time of arrest.
Reddy, a senior civilian officer belonging to Indian Coast Guard Services was suspended from service on August 31, after initiating disciplinary proceedings against him on August 21 following a case booked by the ACB against him on August 1.
The ACB is inquiring into alleged violation of rules in floating of tenders for various mining projects and signing of agreements under Reddy. The agency is also looking into the violation of mines and minerals rules, operations of sand mining and violations of orders of National Green Tribunal and Supreme Court to benefit certain private firms.
Based on the prima facie evidence, the ACB registered a case against Reddy and others under relevant sections of Prevention of Corruption (Amendment) Act-2018 and criminal breach of trust by public servant and criminal conspiracy of IPC and relevant sections of Mines and Mineral (Development and Regulation) Act.
On September 18, Reddy moved the high court contending that his deputation to the state government had ended on August 31 and the state government lacked jurisdiction to suspend him after he was relieved.
The HC asked the state government to submit all details pertaining to the case and posted the matter for further hearing on October 14. However, the HC did not grant any stay on his arrest and prosecution in the case.