Chartered Accountant, Businesswoman Booked in Alleged KCR Kits Scam Worth Rs 19 Crore

A Chartered Accountant and a Businesswoman have been accused of cheating a trader out of more than Rs 19 crore in Hyderabad. The alleged fraud is connected to a deal involving the Telangana government’s KCR Kits program, which provides support to new mothers and newborns.

Sirisha Rani, the owner of Maa Yarn and Fibers secured a government contract to supply KCR Kits, which are the baby care packages provided to new mothers under the state welfare initiative. The police claimed that Rani took the help of Sahan Enterprises to manage the deliveries on her behalf to the Telangana State Medical Services Infrastructure Development Corporation (TSMSIDC) as she could not handle the deliveries. She promised a 1% commission for managing deliveries.

The complainant, who runs Sahan Enterprises, claims that they supplied the goods as promised between 2017 and 2021. While the government made full payments to Sirisha’s company, he alleged that Sirisha never paid the funds to him.

He further accused that when he asked for his dues, Sirisha and her Chartered Accountant, Armoor Aravind of ABNK & Associates, both tried to hide the financial records. As per the complaint, Aravind allegedly issued the audit statement with a two-year delay and then showed a predated certificate, which claims the pending amount as Rs 55 lakh. However, the actual pending amount according to the complaint was Rs 19.9 Crore. The complainant accused both Sirisha and her Chartered Accountant of hiding the transactions and also of manipulating financial records to avoid making the payment.

As per experts, if these claims are proved during the police investigation, it could result in disciplinary action from accounting regulators. The accused has not released any public statement.

A case has been registered under Sections 420 (cheating) and 406 (criminal breach of trust) of the Indian Penal Code (IPC) by the Kushaiguda Police. As per a police officer, the audit records, bank transactions, and relevant documents are being investigated to check if these were actually manipulated. The Investigators are analysing the nature of transactions and how much the parties were involved. As the investigation is ongoing, the authorities claim that there are two firms and the CA involved in this fraud.