12 October,2009 08:08 AM IST | | Imran Gowhar
Balakrishna Rao's bosses at Manipal Motors also accuse him of other serious offences
The police have arrested P N Balakrishna Rao, CEO of Manipal Motors, in a cheque bounce case.
Remanded in judicial custody on Thursday, Rao is accused by his chairman, T Sudhakar Pai, of trying to create a smokescreen to hide his offences with false police complaints.
Rao had earlier filed a forgery case against Pai.
Inspector Abdul Khader said he had executed a non-bailable warrant issued by a Mumbai court against Rao.
u00a0Rao issued a cheque for Rs 1 crore to Tata Capital, which bounced for want of funds. Pai had filed a complaint with the Director General and Inspector General of Police in this regard. Pai alleges that Balakrishna Rao and his brother Ramachandra, chairman of Credit Corporation of India (also a Manipal Group company), cheated the company of several crores of rupees.
When the company tried to question Balakrishna Rao, he allegedly threatened its executives. The company has reportedly terminated Ramachandra Rao from his position and is contemplating legal action. Auditors have unearthed several irregularities committed by Balakrishna Rao, according to Pai.
Balakrishna Rao allegedly transferred Rs 40 lakh from his company to his brother's company. Such diversion of funds is said to be against the rules. Without the board's approval, Balakrishna Rao reportedly issued the cheque for Rs 1 crore to Tata Capital. He also allegedly gave corporate guarantee to various companies for financial gain, without the board's approval.
