The Central Crime Station (CCS) police in Hyderabad have arrested M Srinivasulu, the chief of projects at Transaction Analysts (India) Private Limited, for allegedly withholding government data and attempting to divert it to a private application.
Complaint Filed by ESD Wing
The Electronic Service Delivery (ESD) wing of the IT and Communications Department filed a complaint against the company, its Managing Director and CEO Srinivasa Rao Katuri, and others. They are accused of breach of trust, misappropriation of digital assets, and obstructing the project handover process.
Contract Details
Officials stated that the firm was awarded a work order in January 2017 to develop and maintain a state digital platform. The government paid approximately Rs 70 lakh for development and implementation, in addition to monthly maintenance charges. The contract, extended three times between 2018 and 2025, ended on May 31, 2025. A fresh tender was subsequently awarded to Purview India Consulting and Services LLP as the lowest bidder.
Allegations and Arrest
According to the agreement, all project data, source code, and digital assets were to be handed over to the government after the contract ended. However, officials alleged that the firm failed to cooperate, claimed ownership of government data using fraudulent documents, and attempted to divert user data to a private application. Following the complaint, CCS registered a case and issued notices to current and former employees. Srinivasulu was arrested on April 25. Meanwhile, CEO Srinivasa Rao Katuri and operations manager Kiran Kumar are absconding.
Government Action
The government is considering penalties, including blacklisting the firm and recovering damages. Further investigation is underway.
