Nandigama (NTR District) — September 6, 2025
A shocking case of fraud has come to light in Nandigama mandal. Cooperative Society Secretary Gunnan Ellareddy reportedly cheated farmers out of ₹2 crore using forged bills.
The Deceptive Scheme Uncovered
- Farmers borrowed loans from Pedda Varma Cooperative Society, combining multiple schemes to receive up to ₹8 crore in credit.
- Ellareddy issued fake receipts for large payments, while society records showed only ₹10 in repayment.
- The scam involved manipulating both long-term and short-term loan programs, including “Rythu Nestham” and “Karshaka Mitra” schemes that are vital for farmers’ survival.
Manipulation From Within
Ellareddy, once just a “gamastha,” rose to become Secretary in 2014. Since then, it appears he has been defrauding local farmers using these fake bills.
Investigation and Suspension
Assistant Registrar Ajay Kumar led the inquiry and collected detailed evidence. Following this, KCC Bank CEO Shyam Manohar ordered Ellareddy’s suspension, pending further action.
Why This Matters
- Betrayal of trust: Farmers—already financially vulnerable—were exploited by the person whom they trusted to help them.
- Systemic failure: Fake billing within a cooperative society undermines the purpose of agricultural support.
- Implications for relief programs: Misuse jeopardizes public confidence in vital farmer assistance schemes.
At a Glance
| Detail | Information |
|---|---|
| Location | Nandigama Mandal, NTR District, Andhra Pradesh |
| Accused | Cooperative Secretary Gunnan Ellareddy |
| Estimated Fraud Value | Approximately ₹2 crore |
| Total Loans Disbursed | Up to ₹8 crore combined across schemes |
| Investigation Lead | Asst. Registrar Ajay Kumar |
| Action Taken | Suspended by KCC Bank CEO Shyam Manohar |