Nagarjuna chief, director held in judicial custody

17 December 2008

The XII additional chief metropolitan magistrate has remanded Nagarjuna Group chairman and founder director of Nagarjuna Finance Limited, K Satyanarayan Raju and director PKS Mahadevan to judicial custody till 29 December.

The two, who were arrested on Monday for allegedly defrauding NFL depositors, will be kept at the Chenchalguda central prison on judicial remand till 29 December.

The court also rejected their petition seeking medical assistance, saying, "The court saw no merit in the petition filed (under Section 54) to send them to a medical examiner."

The police, meanwhile, is expected to have recovered some documents relating to the case from Raju.

NFL, a non-banking financial institution, had defaulted on repayment of matured deposits after it suffered an acute liquidity problem in 1999. The depositors approached civil courts, police stations and consumer fora and filed cases against NFL directors. Nearly 700 warrants issued by courts across the country are pending against them.

Nagurjana Finance Ltd collected deposits worth hundreds of crores till 1997-98 from 52 branches country-wide.