Keshava Reddy Institutions chairman arrested, firm in Rs 800 cr loss

Kurnool, Sep 10:Central Crime Station (CCS) Police today arrested Keshava Reddy, chairman of Keshava Reddy Group of Educational Institutions at Kurnool today for failing to repay deposits to investors. Keshava Reddy first set up a school in his native town Nandyal and within a short time he set up schools and colleges in all major cities and towns in Andhra Pradesh and Telangana. Keshava Reddy reportedly collected Rs 800 crore deposits from the parents of students in his educational institutions. As he failed to repay the deposits after the due date, the investors (parents) staged protests in front of the educational institutions and lodged police complaints. According to reports, the organisation used to collected Rs 1 lakh to Rs 2 lakh from parents while giving admission in nursery or LKG. The school management will not collect any fee from the student till X standard and the deposited money would be refunded without any interest after the student completes schooling. It is said that banks also auctioned his properties as he failed to repay loans. Keshava Reddy would be produced in court today and the police may seek one week custody.