Jagan Govt issues GO attaching Rs 793 cr from Margadarsi

The AP State government on Monday issued a GO attaching Rs 793 crore cash from the Margadarsi Chit Fund Company. The CID which is investigating the case reported to the state government about the irregularities in the chit activities of the Margadarsi.

The CID also alleged that the Foremen, Auditor, managing director and the chairman have transferred the chit fund money to the Margadarsi corporate office in Hyderabad and invested the same in the mutual funds against the rules.

The CID further said that the Margadarsi is operating with 37 branches in Andhra Pradesh and every branch was visited and inspected some of the branches over the period. Irregularities were noticed in the branches of Vijayawada, Guntur, Narasaraopet, Anantapur, Eluru, Rajamahendravaram and Visakhapatnam.

Margadarsi auditor, K Shravan, and the foremen of these branches, managing director Cherukuri Sailaja, chairman Ramoji Rao “have conspired and committed the offences,” the government said in the GO.

Margadarsi has 1989 active chit groups operating in its branches in Andhra Pradesh with chit value ranging from Rs 50,000 to Rs 1 crore, the CID said. The state government had asked the CID additional director general to take control over the attached movable property of Margadarsi.

The government also directed the CID to file an application before the court concerned to make orders absolute.