College owner held for misusing employees’ bank accounts in Andhra Pradesh’s Vijayawada

Rao and his clerical staff made the deposits without the knowledge of the staff,

By: Express News Service | Hyderabad | Published:November 30, 2016 12:42 am

A private college owner was on Tuesday detained along with a bank manager for allegedly depositing demonetised notes worth around Rs 80 lakh into his employees’ salary accounts and withdrawing the money in new currency in Andhra Pradesh’s Vijayawada.

Officials said that Gandhiji Women’s College owner C Laxmikanta Rao hoodwinked his employees into signing blank money withdrawal forms on November 11 before depositing the money into Tamil Nadu Mercantile Cooperative Bank’s 42 accounts.

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“The college had salary accounts with Punjab National Bank, but due to some service related complaints, the college opened new salary accounts with Tamil Nadu Mercantile Bank in the first week of November before the demonetisation announcement,’’ said Assistant Police Commissioner G Rama Krishna. “Although, some lecturers realised what was going on, they did not say anything at that time.’’

Rao and his clerical staff made the deposits without the knowledge of the staff before starting the process of withdrawing the money in new currency using the withdrawal forms from November 22.

“Over last one week, some lecturers got text messages that money was withdrawn from their accounts and they became alarmed and informed police,’’ said Krishna. “We conducted an inquiry and have started questioning a few people from the college and bank officers who we suspected colluded to turn black money into white.’’