Mudra Co-operative Society Chairman Arrested in ₹140-Crore Fraud Case

Rapid Summary

• Telangana CID arrested Thippeneni Ramadasappa Naidu, chairman of Mudra Agriculture Skill advancement Multi-State Co-operative Society Limited, for a ₹140 crore fraud.
• Over 2,000 farmers and unemployed individuals were deceived with false claims resembling the Pradhan Mantri Mudra Yojana scheme.
• Ramadasappa Naidu and his son, Thippeneni Sai kiran (43), were charged and remanded by a magistrate.
• The accused falsely marketed the society as government-approved, promising members permanent government jobs and high returns on deposits.
• The examination uncovered misleading job advertisements for 2,000 ‘government marketing supervisor’ roles; applicants paid fees under the pretext of ‘share capital’ or ‘investment bonds.’
• Employees faced coercion including deposit collection targets-shortfall resulted in salary deductions-and threats against those who protested.
• Funds from victims were allegedly diverted to purchase industrial plots via M/s APIIC Limited.
• Society reportedly opened 330 branches and recruited approximately 1,600 employees; 10 cases have been registered by victims across Telangana.
• CID issued an advisory warning against unauthorised financial schemes offering exaggerated returns.

Indian Opinion Analysis
The arrest of Ramadasappa Naidu exemplifies the vulnerabilities in India’s rural economy where many lack access to reliable financial education. This case highlights how government-linked schemes like PMMY can be misrepresented to exploit trust among farmers and daily wage earners looking for security. Such incidents not only create significant financial distress but also undermine confidence in genuine initiatives aimed at uplifting marginalised sectors.

With over ₹140 crore defrauded across thousands of victims, this episode raises critical questions about regulatory oversight mechanisms for cooperative societies. Strengthening public awareness campaigns about verifying RBI registrations may deter similar scams moving forward. Additionally,policymakers might use this as a learning moment to make access to legitimate schemes more clear and easily understood by grassroots beneficiaries.

while swift action has been taken against those involved in recruitment frauds under illegal pretenses-a reminder that societal safeguards must extend beyond punitive measures-forensic investigation into fund flow may further uncover systemic gaps enabling such large-scale deception.Read More: Link