After the fixed deposit scam had surfaced in October 2012, the two officials Md. Liyakat Ali, General Manager, and Sk Ahmed Ali, Accounts Officer had been placed under suspension and the Crime Investigation Department has given a clean chit and informed the corporation about the then General Manager and the Accounts Officer of the AP Minority Finance Corporation.
The evidences (oral and documentary) collected during the course of investigation did not revealed criminal involvement of Md. Liyakat Ali, general manager, and Sk Ahmed Ali, accounts officer to be in the multi-crore fixed deposit scam.
Additional Director General of CID in a communication to the present managing director of APSMFC informed that only former managing director Mohd. Ilyas Rizvi, IFS, was responsible for the fraud.
The CID in its letter said that, Mohd. Ilyas Rizvi along with private individuals V.K. Sai Kumar, Nanduri Venkata Ramana, Naveen Sagar and Bondada Kesava Rao gave support to the scam and withdrawals worth Rs.59 crore from the corporation.
The private parties which are involved in the scam along with Razvi had make a clean breast that they had paid a commission of Rs 80 lakh to Rizvi for making fixed deposits of Rs 80.01 crore in Vijaya Bank.
Letter to current MD
A letter to the current managing director of APSMFC cleared air by revealing that Md. Liyakat Ali, general manager, and Sk. Ahmed Ali, accounts officer, has no criminal involvement on their part and had only followed the instructions of their former managing director Mohd. Ilyas Rizvi as he was their boss at that time .
No criminal action would be taken against them but both are liable for departmental action, the CID said.Mohd. Hashim Shariff, the current MD of the Corporation, was astonished by the outcome and has written back to the CID to re-investigate the case.
The role of Liyakat Ali and Ahmed Ali could not be ignored, as they had been involved in the scam along with razvi. When the allegations against Razvi is established these two needs to be punished as they are actively involved in sanctioning of cheques and letters to various banks authorizing private persons to make fixed deposits on behalf of the corporation. The MD in his letter said.
There were about 28 bank accounts opened by the trio in 16 different districts and made fixed deposits against the rules of the corporation, the CID informed.
Liyakat Ali and Ahmed Ali had failed to performed their primary duty to bring the fraudulent instructions of their boss to the notice of the government and claim that they had only obeyed the orders of their superior.
The conclusion of the probe was conflicting with the findings of the internal auditors and a committee appointed by the government.