The CID, Visakhapatnam on Monday arrested eight persons in connection with the Sanik Welfare Board scam reported in 2018.
The CID probe began after Majji Seethamma, wife of Appala Reddy, an ex-serviceman, and 94 others lodged a police complaint alleging that then executive board members of Ex-Servicemen Mutually Aided Cooperative House Building Society, in collusion with then Zilla Sainik Welfare Officer P. Satya Prasad and eight others, made around 3,594 members join the society and collected ₹24 crore, promising house sites. They allegedly misappropriated funds by showing government land as if it were alienated to the society.
The Airport Police booked cases under Andhra Pradesh Protection of Depositors Financial Establishment Act,1999, and after preliminary investigation, the case was handed over to CID,Visakhapatnam.
The accused were produced before the Chief Metropolitan Magistrate, Visakhapatnam-cum-Designated Court for cases under A.P. Protection of Depositors of Financial Establishment Act 1999, and sent to judicial remand till June 29, said investigating officer Malla Seshu, adding that two more accused are absconding.
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