Nagarjuna Fert CMD held over NBFC dues

HYDERABAD: K S Raju, the chairman and managing director of Hyderabad-based Nagarjuna Fertilisers and Chemicals Ltd (NFCL), was arrested by Central Crime Station (CCS) officials on Monday in a case related to the erstwhile Nagarjuna Finance, a non-banking finance company (NBFC) promoted by the Nagarjuna group.
Raju was held under

Section 420 (cheating) and Section 406 (criminal breach of trust).

Raju will be produced in the court on Tuesday, a senior police officer told DNA Money. Police records show that Raju, on behalf of Nagarjuna Finance, owes the NBFC’s depositors close to Rs 100 crore. Though there is no word on the sections under which he will be booked, sources said they are likely to be those for white collar offences and cheating gullible depositors.

Set up in 1982 by the Nagarjuna group, Nagarjuna Finance offered financial services such as fixed deposits, leasing and hire-purchase.