The arrest of two “billionaire” police officials involved in massive corruption and a money lending racket has stirred a hornet’s nest in Telangana police. last week, an Assistant Sub-Inspector (ASI) Mohan Reddy was arrested in Karimnagar district for running a private money lending business with the backing of many other members of the police force.
On Sunday, the Anti-Corruption Bureau (ACB) arrested an Assistant Commissioner of Police (ACP) Sanjeev Rao in Hyderabad for owning assets disproportionate to his known source of income. The two are believed to be in possession of assets worth hundreds of crores. The assets of Sanjeev Rao alone include 200 acres among other things.
With two sensational cases of corruption coming to light in quick succession, the State ACB is now planning to launch a clean-up drive in the police department with another 25 tainted officers of Deputy Superintendent of Police rank on its radar.
According to the investigations by the Karimnagar district police, Reddy was running a well-organised money lending business and fleecing people. He used to give secured loans and the borrower would have to pledge some asset, like house, land or other properties as collateral for the money. In case the borrower failed to pay the loan back, Reddy used to seize and occupy their property.
If anyone objected, he would use his position as an ASI to threaten and prevent his victims from lodging a police complaint. Since many other policemen posted at different places in the district were suspected to be his business partners, the victims were not able to file a complaint in any police station.
However, the racket came to light when one of the victims, the principal of a school, who had borrowed Rs 50 lakh from Reddy, committed suicide and left behind a note blaming the policeman for his death.
The District Superintendent of Police Joel Davis ordered a probe into the principal’s death and the investigations opened up a Pandora’s Box. Reddy was arrested and put under suspension for indulging in illegal activities and misusing his position as a policeman.
Numerous victims of his operation included MlA of Peddapally Manohar Reddy, who had borrowed Rs 3 crore from the tainted policeman and even paid back Rs 1.8 crore as interest.
Karimnagar district police officials investigating the case said that money earned through graft was used for lending and those involved in the racket had amassed properties worth hundreds of crores.
Such was the clout of the syndicate that Reddy had also invested money in Telugu films. “He was lending money at an interest rate of five per cent to ten per cent per month which not many people were able to pay back, resulting in the loss of property,” a senior police official said. Police are now on the heels of other policemen involved in this racket.
The arrest and suspension of another top cop, Sanjeeva Rao, ACP Kukatpally division, in the city has also left many in the force stunned as the official was found to possess numerous properties including a duplex house in Hyderabad, a farm house on the city’s outskirts, several commercial properties in Hyderabad and Warangal and nearly 200 acres of land at different places. Police also recovered documents of properties and jewellery from his residence and other places.
ACB officials say the ACP, who began his career 17-years-ago as a Sub-Inspector, had accumulated wealth while serving in different places, including, ironically the ACB.
What has given the case an even more interesting turn is his relationship with senior Telangana Telugu Desam leader E Dayakar Rao. The suspended ACP’s daughter is married to Dayakar’s son. During the search operation the ACB also raided the residence of Dayakar’s son and questioned the couple.
Rao came on the ACB’s radar after it received eight complaints over the last ten months. After keeping an eye on him and closely studying his lifestyle, the ACB swooped down on him.