Margadarsi Chit Funds scam: AP CID cautions subscribers, says agents might deceive
AP CID cautioned the subscribers to check before signing any documents given by Margadarsi agents and/or managers.
By Newsmeter Network Published on 28 July 2023 12:54 PM GMT
Amaravati: Expanding the scope of investigation in the Margadarsi Chit Funds scam case, the principal secretary (Home) of the Andhra Pradesh government issued a GO on July 27, attaching movable assets of Margadarsi Chit Funds Pvt Ltd (MCFPL) belonging to investments in the share capital of Usha Kiran Media Ltd and Ushodaya Enterprises Pvt Ltd.
The Andhra Pradesh Crime Investigation Department (AP CID) has been conducting investigations into seven cases filed against key individuals and entities, including Ramoji Rao (A1), Cherukuri Sailaja Kiran (A2), branch managers (A3), and MCFPL (A4).
It is worth noting that the authorities had already issued two GOs which led to the attachment of movable properties of MCFPL, totalling an amount of Rs 1,035 crore, and the CID is now in the process of winding up nine branches in Andhra Pradesh.
Notably, in two of these criminal cases (No 3/2023 and 8/2023), the AP CID had already filed chargesheets against 15 individuals. The charges levelled against the accused include serious offences, such as criminal conspiracy (120-B IPC), cheating (420 IPC), misappropriation of funds (403 IPC), criminal breach of trust (409 IPC), falsification of accounts (477 (A) V), and violations of Section 5 of the Andhra Pradesh Depositors of Financial Establishment Act and under the Chit Fund Act.
Margadarsi subscribers ‘deceived’
Addressing the media, CID IGP Ch Srikanth and SP Amith Bardar said, “The AP Stamps and Registration Department has issued a number of winding up orders relating to the certain chit groups operated by the Margadarsi Chit Funds. These winding up orders were contested by MCFPL and a few subscribers before the courts.”
They said that the department has informed the CID that some of these writ petitions filed may have been fraudulently signed by deceiving the subscribers. "We caution the subscribers of MCFPL to kindly read the documents, if any, produced before you for signatures by any agent or manager of the MCFPL,” said Amith Bardar.
The chit fund company was found violating norms of the Chit Fund Act, 1982, by diverting funds to their associate companies, and laundering money by accepting cash subscriptions in high amounts in violation of various prevailing laws.
The MCFPL, established on August 31, 1962, in Hyderabad, has a total of 108 branches in four states - Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. They have 37 branches in Andhra with 2,351 chit groups and 1.04 lakh subscribers. For the finance year 2021-22, their annual turnover in Andhra and Telangana states was Rs 9,677 crores.
