Now, ‘fake bank guarantees’ scam in AP govt!

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There seems to be no end to scams in Andhra Pradesh under YSRCP regime headed by Chief Minister YS Jaganmohan Reddy.

AP witnessed ‘fake challans’ scam in stamps and registration department in September this year wherein brokers in nexus with registration officials siphoned off Rs 13 crore by submitting fake challans for property registrations.

Later, the AP witnessed “CM Relief Fund scam” in the same month in September, wherein few CMO official in nexus with brokers siphoned off crores of rupees by submitting fake medical bills and claiming funds under CMRF. 

The AP government ordered inquiry into both these scams.

Now, a latest scam came to light in AP, wherein rice millers submitted fake bank guarantees to AP civil supplies corporation.

Rice millers have to submit bank guarantees for milling rice for public distribution system (PDS). The civil supplies corporation supplies thousands of tonnes of paddy to each mill for milling. The millers have to produce rice and return to AP civil supplies corporation. The millers have to submit bank guarantees to corporation as security deposit for taking paddy stocks from government for milling. If millers default on returning rice stocks, the government utilises bank guarantees and cover up its losses.

However, officials of civil supplies corporation and rice millers colluded and submitted fake bank guarantees to government. They forged the signature of bank officials and corporation officials on fake bank guarantees and submitted to government.

The AP government ordered an inquiry into this issue.

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