AP CID books cases against Margadarshi Chits

Ch Ramoji Rao, Ch Sailaja and others named as accused

The Crime Investigation Department (CID) has launched searches at the offices of Margadarshi Chit Fund Private Limited in different parts of Andhra Pradesh.

The searches come in the wake of a complaint lodged by Stamps and Registration Department, the regulatory authority of chit fund business. The regulatory authority allegedly found several irregularities, serious lapses and fraud.

Based on the complaints, CID on Friday registered cases against Ch Ramoji Rao, Ch Shailaja and branch managers concerned under sections 120(B),409,420,477(A) Read with 34 of IPC, Section 5 of Andhra Pradesh Protection of Depositors in Financial Establishments Act, 1999 and Section 76,79 of Chit Funds Act 1982.

Consequently, searches are being conducted in Margadarshi branches in Visakhapatnam, Rajamahendravaram, Eluru, Vijayawada,Guntur, Narasaropeta and Ananthapuram Branches.

The CID said in a release that its officials are questioning the foremen of these branches about the alleged fraud. The probe agency said that the foremen of Narasaraopeta, Eluru and Ananthapuram are absconding.

Apart from improper maintenance of records, the company has diverted funds to other business.

The CID said that one of the subsidiary of Margadarshi includes Ushakiron Media Private Limited is not engaged in chit fund business though the subsidiary holds 88.5% of the paid up capital.

According to Section 12 of the Chit Fund Act, 1982 except with the general or special permission of the State Government, no company carrying on chit business shall conduct any other business, the CID said.

Meanwhile, political pundits said that the YSRCP government got the cases registered as part of political vendetta. It has to be seen how Margadarshi Group comes out with its defence.