Hyderabad: Former MP Undavalli Arunkumar has filed a special leave petition in the Supreme Court (SC) in the Margadarsi Financiers case. He has challenged the verdict of the High Court of united Andhra Pradesh scrapping a criminal complaint against Margadarsi.
"Margadarsi Financiers filed a quash petition to rule out the criminal complaint number 540 filed against them. The one-member High Court Bench scrapped the CC540 in favour of Margadarsi Financiers. We wrote a letter to Telangana Government to file in Supreme Court," said Undavalli.
In his petition, the former MP has sought to make Telangana and Andhra Pradesh governments as parties to the case.
"The common High Court delivered the judgment exactly a day before the division of the High Court. The united AP High Court gave judgement on December 31, 2019. I want Telangana and Andhra Pradesh governments to be part of the case," said Undavalli.
Margadarsi Financiers is undivided Hindu Undivided Family (UHF) under RBi Act-1934 section 45 (s).
"Violating the RBI norms, Margadarsi mobilised deposits. United AP High Court misinterpreted, section 45 (S). HUF doesn't fall under the Association of Individuals. Saying Margadarsi should not be brought under Section 45 S(2), the High Court dismissed the criminal complaint filed against the Margadarsi," remarked Undavalli.
The then AP government on December 19, 2006, released orders to take action against Margadarsi for raising Rs 2,300 crore deposits. The united AP government cited the reason saying that this was a violation of RBI Act-1934 Section 45 (S). Reports spread in the market that Margadarsi had incurred losses equivalent to almost half of the value of deposits. Considering the financial position of Margadarsi, the united AP government issued orders to protect the interests of depositors. The government also appointed the then financial advisor N Rangachary through GO No: 800.