Hyderabad: A fresh trail in the disproportionate assets case against survey and land records deputy director S Narahari has led Anti-Corruption Bureau (ACB) officials to what they describe as highly suspicious cash transactions involving a Hyderabad-based co-operative society.Investigators found that the official had allegedly parked Rs 3.5 crore in cash as fixed deposits with the co-operative society and was receiving Rs 3.65 lakh every month as interest — entirely in cash — prompting the ACB to alert the income tax department over possible violations of tax laws.The revelations emerged during the ACB’s probe into the disproportionate assets case registered against Narahari. The agency had conducted simultaneous searches at 10 locations linked to him in Hyderabad on June 16, uncovering assets worth around Rs 70 crore.During searches at his residence and bank locker, ACB officials seized Rs 3.06 crore in cash. Among the recovered money were cash bundles worth Rs 3.65 lakh kept in a pouch bearing the stamp of S** P*** M**** MAC Society Ltd. Investigators also found six fixed deposit receipts issued by the Secunderabad-based Mutually Aided Co-operative (MAC) Society in Narahari’s name for a total of Rs 3.5 crore.Subsequent inquiries by the ACB revealed that the fixed deposits were made in 2025 for a two-year term carrying an annual interest rate of 11%. Officials questioned the society’s operators about the transactions after finding no record of online transfers from Narahari to the society.“There were no online transactions of Narahari paying the co-operative society towards fixed deposits. The deposits were in cash. The co-operative society has been paying him about Rs 3.65 lakh monthly interest for the deposits and that too all in cash. This is a clear violation of the Income Tax Act,” said an ACB official.According to the national cooperative database of the Union ministry of cooperation, the society is registered as a credit and thrift co-operative operating in Telangana. ACB sources said such societies can accept deposits only from their members and, under provisions of the Income Tax Act, cannot accept or make cash payments of Rs 20,000 or more.The ACB secured two days’ police remand of Narahari on Monday and produced him back before the court on Tuesday after questioning him.During interrogation, Narahari reportedly told investigators that one Ashok, a relative and a senior member of the society, had persuaded him to make the deposits.“But he was not able to provide any logical answer about how he deposited the amount and how the society is paying him interest in cash, in violation of the IT Act,” said an ACB source.The bureau has sought detailed information from the co-operative society regarding Narahari’s association with it, his financial transactions and particulars of all depositors. Investigators suspect the society, whose members are said to include several retired bankers, may be conducting a significant volume of transactions in cash.ACB officials said details of the society’s suspected financial irregularities would be shared with the income tax department’s investigation wing for further examination.
