YSR Congress Vishakapatnam Senior Leader Malla Vijaya Prasad has been arrested by Odisha Police for his involvement in the Vizag Chit Fund Scam. Malla has been made the Chairman of Andhra Pradesh Education And Welfare Development Corporation after Jagan came to power.
Economic Offence Wing, CID, Crime Branch, Bhubaneshwar of Odisha has arrested him and produced him before the magistrate. Cases have been registered under Section 420, 406, 467, 468, 471, 120 (B) of IPC r/1 Section 4,5, and 6 of PC and MC Schemes (Banning Act) 1978 and Section 6 of OPID Act 2011 in connection with a chit fund fraud in 2019.
100s of Depositors from Andhra Pradesh, Odisha, Chhattisgarh, and Telangana have lost money in this scam. related to his firm – Welfare Building and Estate Limited. Earlier CBI raids have also happened on Malla in relation to Chit funs scams in 2016.
Malla Vijay Prasad who is a Real Estate tycoon of Andhra Pradesh has won as Vishaka West MLA on Congress ticket in the 2009 elections. He has joined YSR Congress later and contested as its candidate for the same constituency in the 2019 elections but lost. Malla has also produced a few films in the Telugu film industry.