Extorted funds in accused’s a/c

The contractor of the Handri-Neeva project, who complained to the CID, had deposited the extortion money in the bank account of the accused so that Bhanu and Krishna could withdraw it. CID investigators said Narasimha Rao had also given shelter to factionist M. Suryanarayana Reddy alias Suri, who was later allegedly murdered by Bhanu.

“The extorted money amounting to Rs 95 lakh was deposited in the account of Nani Narasimha Rao of Madhapur and he used the money for various purposes, including his own business,” said CID inspector Chandrasekhara Reddy, who led the police investigating team that arrested the duo. “Dr Neela Srinivasa Rao is a dentist and classmate of Bhanu Kiran. Around Rs 1 crore was deposited into the joint account of the dentist and Bhanu Kiran. The dentist withdrew the money, gave it to Bhanu and his gang and also used it for upgrading his clinic,” Mr Chandrasekhara Reddy said.

The case was registered based on a complaint filed by K. Venkata Narasimha Reddy of Kaya Infratech Projects of Mahbubnagar, a sub-contractor working on the Handri Neeva project. The investigating team of the police has already arrested Bhanu Kiran and D. Krishna. “There are two cases registered with us regarding the Handri-Neeva project in which Bhanu, Krishna and others extorted Rs 4.5 crore to Rs 5 crore,” CID officials said. The deposits were made in 2008 at the SR Nagar and Begumpet branches of Axis Bank, a private scheduled bank, and the Andhra Pradesh State Cooperative Bank branch at Troop Bazaar here.

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