The Crime Investigation Department (CID) of Andhra Pradesh on Tuesday served notices to media baron and chairman of Margadarsi Chit Funds Private Limited (MCFPL) Cherukuri Ramoji Rao and his daughter-in-law and managing director of MCFPL Cherukuri Sailaja for investigation into the Margadarsi Chit Fund case.
The CID issued notices under section 160 Criminal Procedure Code to examine them at their residence/office and provided four different dates.
It has asked them to be present at home or appear before it either on March 29 or March 31 or April 3 or April 6.
The probe agency has also summoned branch managers of various branches of the chit fund company.
The notices have been served for alleged cheating, diversion of deposits into mutual funds, which are contingent on capital markets’ risks and violation of Chit Fund Business Act and Reserve Bank of India (RBI) guidelines
Acting on complaints by the Assistant Registrars of Chits, CID recently registered multiple FIRs across Andhra Pradesh into alleged chit fund fraud.
The complaints came after the Stamp and Registration department raids on the offices of Margadarsi at several places in Andhra Pradesh and Telangana during October and November last year.
It was allegedly found during rains that the chit fund collections from the branches were being transferred to the corporate office and the huge amounts were being invested in mutual funds.
A case was registered against Margadarsi under Sections 120(B), 409, 420, 477(A) read with 34 of IPC, section 5 of Andhra Pradesh Protection of Depositors and section 76, 79 of Chit Funds Act 1982.
Multiple CID teams had conducted searches on Margadarsi branches in Visakhapatnam, Rajahmundry, Eluru, Vijayawada, Guntur, Narasaraopeta and Anantapur.
Non-payment of monthly subscriptions, illegal diversion of funds to the corporate office, non-disclosure of revenue and expenditure accounts and other irregularities were named by the CID.
Say. A1. CID