Andhra govt orders CID to attach assets of Margadarsi Chit Fund
CID had earlier registered seven first information reports against Ramoji Rao, who is the chairman of Margadarsi and his daughter-in-law Sailaja Kiran, the managing director of the company
Hyderabad
The Andhra Pradesh government on Monday ordered the Crime Investigation Department (CID) of the state police to attach movable properties worth ₹793 crore belonging to Margadarsi Chit Funds Private Limited (MCFPL) promoted by media baron and Eenadu group chairman Ch Ramoji Rao.
A government order (GO No. 104), issued by the state home department, late in the night, said the decision to attach the properties of Margadarsi Chit Funds was taken in order to protect the interest of the chit subscribers and their hard earned money, an official note from additional director general of the CID N Sanjay said.
Accordingly, the CID was asked to attach the deposits of the company worth ₹793,50,72,460. The investigation agency said during the inspection, it was noticed that certain movable properties were held in the name of the company.
“The government issued an order under sections 3 and 8 of the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999,” the official note said.
The CID had earlier registered as many as seven first information reports (FIRs) against Ramoji Rao, who is the chairman of Margadarsi and his daughter-in-law Sailaja Kiran, the managing director of the company.
The FIRS were registered under Sections 120(B) (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), and 477(A) read with 34 (falsification of accounts) of the Indian Penal Code, Section 5 of the Andhra Pradesh Protection of Depositors in Financial Establishments Act, 1999, and Section 76, 79 of the Chit Funds Act, 1982.
During the course of the investigation, the CID chief said the agency had unearthed credible evidence pointing towards illegal deposits made by Margadarsi Chit Funds under the guise of “receipts.”
The investigation agency also noticed that the company had diverted the funds to other investments illegally, which violates the RBI regulations and the provisions.
Recognising the urgency to protect the interests of chit subscribers, the CID has written to the Andhra Pradesh government seeking permission to freeze any financial assets that could potentially be diluted by the company, Sanjay said.
“Accordingly, the government asked the CID to take necessary further action in the matter as per the provisions of the said act and the rules and send compliance report to the government,” the official note said.
These measures are crucial in preserving the assets and resources that rightfully belong to the Chit subscribers, enabling their interests to be safeguarded effectively, the CID ADG added.
Efforts to reach Margadarsi Chit Funds spokesman for a reaction did not succeed.
