Multi-crore GHMC scam: More arrests likely, say cops

HYDERABAD: Following the arrest of four former employees of GHMC who were allegedly involved in a scam that caused huge losses to the Corporation, the central crime station police on Thursday obtained one-day custody of the accused to question them about the involvement of others. It is learnt that few more arrests are likely to follow.

Earlier in 2016, the Vigilance and Enforcement wing of the Corporation filed a report unearthing a multi-crore scam in repair of GHMC vehicles. Later, the CCS police registered a case against 10 commercial establishments. Preliminary probe revealed that some officials have colluded with 10 firms — BVR Enterprises, Ayyappa Motors, Saraswati Automobiles, Amrutha Engineering Works, Bhavani Motors, Gayathri Engineering Works, Deccan Enterprises, Venkateshwara Auto Services, Raghavendra Automobiles and Lalitha Parameswari Automobiles — to execute the fraud.

As per the vigilance report, the loss incurred to the corporation is estimated to be around `26.72 crore. The scam happened in 2008-09 in the transport section of Corporation in the name of “spares and repairs of the vehicles.” The officials of GHMC had not verified the frequency of the repairs resulting in expenditure exceeding the actual cost of the vehicles.

Repairs worth over `3.88 crore for around 198 vehicles were shown on the records, despite the vehicles being under warranty period. “The GHMC officials colluded with some spare parts dealers, some of them who are still untraceable, to misuse the funds,” the FIR read. “Several officials including few currently working in various wings of the GHMC have colluded and created huge losses,” it added.  Detective department DCP Avinash Mohanty said “One-day custody of the arrested former employees of GHMC has been given by the court. Their statements will be recorded.”