GHMC Officials Arrested for Fraud

Hyderabad: 4 GHMC Officials Arrested for Rs 5.78 Cr Fraud

Hyderabad: In a significant development, four employees of the Greater Hyderabad Municipal Corporation (GHMC) were arrested on Wednesday, July 31, for their involvement in forgery and cheating. The accused are said to have collaborated with three other individuals to fabricate documents concerning open lands in Upperpally, facilitating the illicit acquisition of Transferable Development Rights (TDR).

The arrested GHMC employees are Mohd Khabirullah Khan and N Krishna Mohan from the GHMC Circle No 11 office in Rajendranagar, and K Srinivas Reddy and A Deepak from the head office. The arrests followed a detailed investigation into the fraudulent activities linked to the GHMC’s plans to expand roads from Dairy Farm PVNR pillar no. 213 to Kismathpur village, which would impact survey numbers 43, 44, and 46 in Upperpally village.

The Scheme Uncovered

According to the police, the scheme involved three individuals who submitted forged documents claiming that their properties were affected by the road expansion project. The implicated GHMC employees are accused of misrepresenting the situation to support these fraudulent claims, enabling the individuals to acquire TDR certificates unlawfully. These certificates, which allow property owners to utilize the development rights elsewhere, were then sold to a real estate developer for Rs 5.78 crore.

Modus Operandi and Arrests

The fraudulent activities came to light when discrepancies in the documentation and the issuance of TDR certificates were noticed. Following a complaint lodged at the Rajendranagar police station, the police conducted a thorough investigation, uncovering the extent of the forgery and the involvement of the GHMC employees.

Mohd Khabirullah Khan and N Krishna Mohan, based in the Rajendranagar office, were found to have played a crucial role in processing the forged documents. Meanwhile, K Srinivas Reddy and A Deepak from the GHMC head office were implicated in facilitating the final approvals and the issuance of the TDR certificates.

The three individuals who collaborated with the GHMC employees in the scheme managed to sell the fraudulently obtained TDR certificates to a real estate developer. The sale proceeds, amounting to Rs 5.78 crore, were then divided among all the accused parties.

Legal Proceedings and Implications

The arrested GHMC officials have been remanded to judicial custody, and the investigation is ongoing to identify any additional accomplices and uncover the full extent of the fraud. The case has highlighted significant vulnerabilities within the GHMC’s processes for verifying and issuing TDR certificates, raising concerns about potential systemic issues and the need for stricter oversight and accountability.

Impact on the GHMC and Public Trust

This incident has not only exposed the fraudulent activities of a few individuals but has also shaken public trust in the GHMC. As a public institution responsible for urban development and municipal services, the integrity and transparency of the GHMC are crucial for maintaining public confidence. The arrests and the ongoing investigation serve as a reminder of the importance of stringent checks and balances within public institutions to prevent such fraudulent activities.

Measures for Preventing Future Fraud

In response to the incident, the GHMC is expected to implement several measures to prevent similar fraud in the future. These may include stricter verification processes for TDR applications, enhanced scrutiny of documentation, and the establishment of an independent oversight body to monitor high-risk transactions. Additionally, the use of technology to create a more transparent and traceable system for processing development rights and other municipal approvals could significantly reduce the risk of fraud.

The development also underscores the need for regular audits and the adoption of best practices in governance to ensure that public institutions remain accountable and transparent in their operations.

Conclusion

The arrest of four GHMC officials for their involvement in a Rs 5.78 crore fraud has brought to light serious lapses in the corporation’s processes and highlighted the need for more robust measures to prevent such incidents. As the investigation continues, it is imperative for the GHMC to restore public trust by demonstrating a commitment to transparency, accountability, and integrity in its operations.

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