Nagarjuna group chairman in judicial custody

FRAUDSTER?: He is believed to have swindled over 85,000 customers.

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Hyderabad: An alleged scam of nearly one crore rupees that was busted eight years ago- on Tuesday, the chairman and director of Hyderabad's Nagarjuna Finance was taken into custody- he is believed to have swindled over 85,000 customers.

“My father had deposited 5 lac rupees, his life's savings in 1997 the amount was supposed to mature in 2001 & become double but then the company failed to pay,” says Nagarjuna Finance customer, Venkateshwar.

Although a warrant was issued against the directors of the company in 2001, the order was stayed by the Andhra High Court.

This was done after the Company Law Board approved Nagarjuna Finance Ltd's plea for more time to repay customers.

It was only in September 2008 that the court finally lifted the stay and the arrest of the company top brass has revived hopes of customers.

“The customers also have the option of filing separate cases against the individual,” says Corporate Lawyer, Ratnakar.

There seems to be hope for the cheated customers. However, the delayed arrest of the two individuals have raised questions about the police investigation as to why it took the cops over two months to arrest the accused despite the stay order being lifted.

He was arrested under sections 420, 406 and section 5 of the Andhra Pradesh Depositors' Protection Act.