Bommarillu scam – CID files charge sheet

Wednesday, September 27, 2017 
Visakhapatnam

Crime Investigation Department (CID) today has filed first charge sheet in the multi-crore scam of Bommarillu Farms and Villas Ltd and its sister concern chit fund under Sections 420, 403, 406 and 120 (B) of IPC and Section 5 of AP Protection of Depositors and Finance Establishment Act-1999 and Sections 4,5,and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

The investigating authority has named ten accused including MD Rayala Raja Rao and his wife Rayala Swati Raja director of the firm and his brother Rayala Lakshminarayana and others who are directors and managers of various wings of the firm in the charge sheet.

It may be recalled that Bommarillu firm has allegedly collected unauthorized deposits by violating the RBI norms and a few other Acts from depositors by luring them with offers of huge return and dishonest intention and cheated the public under the guise of Real Estate business. The firm has collected Rs.95.11 crore from 1.46 lakh depositors in Andhra Pradesh, Telangana and Odisha. It had invested deposits in real-estate and other sectors and they returned Rs.47.44 crore to the depositors and they allegedly siphoned off the deposits to the tune of Rs.47.67 crore.

The first case was registered against Bommarillu with III Town Police station on January 9, 2014. Some directors and managers were arrested and they were later released on bail. The government has issued eight orders to attach the properties of Bommarillu and so far the CID has attached properties worth over Rs.50 crore as per the market value.