Two from Mumbai held for cheating former MP Subbarami Reddy’s wife Indira

Directors of Champion Finsec Limited (CFL) were arrested by the Hyderabad Central Crime Station police for cheating former Rajya Sabha member and film producer Dr.T. Subbarami Reddy’s wife T. Indira Reddy by selling her pledged shares (32,50,000) in the open market without her knowledge.

The accused persons, Chetan Balubai Patel (48) and Harshawardhan Avinash Pradhan (40) were arrested from their residences in Mumbai on November 4 at 11.45 a.m. and produced before a local court in Mumbai. They were later brought to Hyderabad on transit warrant and produced before XII ACMM court, Nampally, and remanded to judicial custody, Joint Commissioner of Police (Detective Department) Avinash Mohanty.

Further, the officer said that on July 20, they received a complaint from Ms. Reddy, the promoter and chairperson of Gayatri Projects Limited (GPL), Hyderabad, stating that the accused persons approached their firm involved in infrastructure and highway development, and informed to arrange a loan with a charge of one per cent commission.

“Believing them, GPL has agreed to take a loan of ₹11,50,63,575 against the 69,63,000 shares valued at about ₹.33.05 crore as of that date. In order to get the loan, eventually, the GPL pledged only 32,50,000 shares with CFL as collateral vide Master Loan Agreement on June 17,” Mr.Mohanty said.

As per the terms of the agreement, the loan amount in proportion to the shares pledged was to be transferred to the GPL account on or before July 12. But CFL has not even transferred any money of the loan amount to the GPL account and further it was found that on July 8, the CFL illegally invoked the pledged shares and sold them in the open market, he said. Ms. Reddy requested to initiate appropriate action against CFL represented by Chetan Balubai Patel and others for justice.

Based on her complaint, a case was registered under Section 406 and 420 r/w 34 of the Indian Penal Code and launched a probe.