The Central Crime Station police, Hyderabad has arrested officials of ICICI Bank and Andhra Bank in a cheque fraud case.

G Prasad, assistant manager of ICICI Bank I Town branch, V Mohan Prakash, a businessman from Khammam and Katneni Sarath Babu, deputy manager, Cheque Processing Centre, Saifabad (Andhra Bank) have been arrested.

The case relates to withdrawal of Rs 5.4 crore via self-cheque by three persons from ICICI Bank branch in Vijayawada on June 16.

The complaint was lodged by Neti Sita Ramaraju, chief manager of Andhra Bank in the first week of June regarding presentation of Rs 5.4 crore cheque, numbered 760585, dated 09-06-2009 issued by Andhra Pradesh State Finance Corporation (APSFC), in favour of M/s Vishal Computer Peripherals & S Solutions at ICICI Bank's I Town branch in Vijayawada.

Following this, the cheque was processed at Cheque Processing Centre, Andhra Bank and the stated amount of Rs 5.4 crore was credited in the beneficiary account (current account no : 030305001628, in the name of M/s Vishal Computer Peripherals & S Solutions).

The account from which money was withdrawn was that of GVVS Vara Prasad. "Even though the real account holder, Vara Prasad was not there in person to take the cash, the assistant manager helped the others withdraw the money with,'' the investigating officer said.

The cash was withdrawn by V Mohan Prakash. Three other accused in the case are absconding.