Never violated AP Chit Fund Act rules, says Margadarsi Chit Funds Pvt Ltd
In a statement, the company alleged that the Andhra Pradesh government was using its machinery to make baseless allegations
By Newsmeter Network Published on 17 April 2023 2:49 PM GMT
Amaravati: The Margadarsi Chit Funds Pvt Ltd (MCFPL) has never violated any provisions of the AP Chit Fund Act & Rules, the company said on Monday amid a CID probe into the alleged violations of the law by it.
In a statement, the company alleged that the Andhra Pradesh government was using its machinery to make baseless allegations, scare monger among chit subscribers and abuse power in its six-month long persecution on Margadarsi.
"Inspite of it, not even one subscriber has raised any query or doubt, all this while MCFPL has moved the High Courts of Telangana state and AP," said the statement, adding AP government is disregarding even judicial orders.
According to Margadarsi, Eenadu one of Ramoji Group's flagship companies and AP's largest circulated Telugu daily has always been at the forefront of upholding people's issues and public interest' for five decades which is not taken in the right way by some governments, especially the YSRC government.
Many irregularities
CID found several irregularities and violations of rules and regulations. It was observed that the chit-fund collections from the branches were being transferred to the corporate office. A huge money was being invested in mutual funds, which are contingent on capital markets' risks. MCFPL has invested Rs 2 crore (amounting to 88.5% of the paid-up capital) in Ushakiron Media Private Limited (not a chit-fund business), against Section (12) of the Chit Funds Act, 1992.
Questioned by CID
Earlier, on 28 March, the Andhra Pradesh CID officials had served Sailaja a notice under Section 160 of the CRPC, asking her to make herself available for questioning at either her residence or the corporate office at Fateh Maidan Road in Hyderabad. On April 3, a team of 20 Andhra Pradesh CID officials questioned Cherukuri Ramoji Rao and Sailaja at their residence as part of their investigation into irregularities at Margadarsi Chit Fund Pvt. Ltd.
Ramoji Rao is the chairman of Margadarsi Chit Fund company, and his daughter-in-law, Sailaja, is the managing director.
The AP CID has already registered cases against Ch. Ramoji Rao, Ch. Sailaja, Margadarshi Chit Funds managers, and also their auditor for violating the provisions of the Chit Fund Act. The AP CID has already arrested four branch managers and the auditor in this case.
Ramoji Rao is facing multiple charges in the case, including Sections 120B, 409, 420, 477(A), and Section 34 of the IPC. The case was registered under Section 5 of the AP Protection of Depositors of Financial Establishments Act 1999. The Andhra Pradesh CID has identified Ramoji Rao as accused number 1 (A1), while his daughter-in-law, Cherukuri Sailaja, is accused number 2 (A2). The respective bank managers involved in the case are referred to as accused number 3 (A3).
Raids at MCFPL branches
Earlier in March, the teams of the CID launched searches at the premises at the branches of Margadarsi Chit Fund Pvt Ltd in Visakhapatnam, Rajamahendravaram, Eluru, Vijayawada, Guntur, Narasaraopet, and Ananthapuramu branches. According to the CID officials, the foremen of these branches are being questioned about the alleged chit-fund fraud. All the records are being examined, and incriminating documents are being seized.
Inputs from PTI
