Home Tags Margadarsi

AP, TS High Courts direction to AP Govt on Margadarsi


Giving a big relief to Cherukuri Ramoji Rao, the high courts of Andhra Pradesh and Telangana State have directed the AP government to stop conducting searches in the offices of Margadarsi. The courts have also questioned the APCID for holding press conferences and telling people on Margadarsi financial activities.

The AP high court which had reserved the orders two days ago, found fault with the state government for conducting searches in the Margadarsi offices in the state. The court also directed the CID and other departments not to conduct any searches in the Margadarsi offices. However, the high court said it could use 46-A rule if searches in the Margadarsi offices were required.

The AP high court also directed the state government not to disturb the day today activities of Margadarsi during their searches. It also cautioned the government against creating panic among the Margadarsi customers during the raids.

Meanwhile, the Telangana State high court at Hyderabad, found fault with the state CID for holding press conferences. The court wondered why the CID officials were holding press conferences and creating panic among the people on the future of Margadarsi.

The counsel for Margadarsi told the high court that the state government was delaying in filing its arguments before the court. The court directed the advocate for the AP State government to file their arguments and counter in the court at the earliest. The court posted the case for next hearing on September 12.

It is now to be seen what the AP government would do in the case, where the government is firm on exposing the alleged financial irregularities by Margadarsi and its chairman Ramoji Rao.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

AP high court stops checking in Margadarsi offices


The AP high court on Monday issued a stay order on the state government inspections in the Margadarsi Chit Fund Company Limited offices in the state. The court said that it would give interim orders in the next two days.

The state government and the Margadarsi Group headed by its chairman Cherukuri Ramoji Rao have locked horns in the state. While Eenadu, also headed by Ramoji Rao, continues to write against the Jagan Mohan Reddy-led government, the government is conducting searches in the Margadarsi offices and filing cases against the chairman and other employees.

The State CID had already booked cases against Ramoji Rao and Margadarsi managing director Sailaja Kiran in the cases. Besides, the CID had also booked cases against some managers of the Margadarsi branches in the state.

The CID, the Stamps and Registration Department and the revenue wing in the finance department have been conducting raids on the Margadarsi offices for the past two days in the state. There are 37 Margadarsi branches in the state and searches are being conducted in all the branches.

The CID have also filed cases against the Margadarsi by taking complaints from some customers of the chit fund company. The CID had also alleged that the Margadarsi had fake subscribers, while some subscribers were not paid their bid (chit) money.

However, the Margadarsi continued to claim witch-hunt by the Jagan Mohan Reddy government and discounted all the allegations of financial irregularities in the chit fund company.

Meanwhile, a section of people in the two Telugu states and elsewhere have come to the rescue of Ramoji Rao. A hashtag campaign in support of Ramoji Rao was launched in the social media alleging that the Jagan Mohan Reddy-led government was haunting Margadarsi and Eenadu groups.

The campaign – #TeluguPeopleStandWithRamojiRao – is trending in social media.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

AP officials raid Margadarsi offices, Ramoji cries foul


The officials of the Andhra Pradesh government conducted raids on the Margadarsi Chit Fund Private Limited across the state on Thursday. The officials have conducted the searches in all 37 branches of Margadarsi.

The search teams consist of officials from the CID, Stamps and Registration Department and the Revenue Intelligence wing. Sources say that the officials are searching the records of Margadarsi on their payment history to the chit bidders, bank transactions and payment of taxes.

As the officials entered the 37 branches of the Margadarsi across the state, its chairman Ramoji Rao found fault with the government action. He said that the searches now were against the violation of the high court order not to disturb the business of the company.

Ramoji Rao alleged that the officials were creating panic among the Margadarsi customers and terrorising the employees. He further said that the officials have closed the entries into the Margadarsi offices in all the branches and did not allow the customers to enter or the staff to do their business.

Meanwhile, both Ramoji Rao and his daughter-in-law and Margadarsi managing director, Sailaja Kiran, did not attend the CID questioning session in Vijayawada. The CID had served the notices to both Ramoji Rao and Sailaja Kiran to attend the questioning in their office in Vijayawada on August 16 and 17 respectively.

However, they both skipped the session. It was for the second time that they skipped the CID questioning. Earlier, they were asked to be present in the CID office in Guntur on July 5. They did not attend this session.

It is now to be seen what the CID would do to proceed further in the Margadarsi case and how the Margadarsi group would react.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

AP issues orders for attachment of another Rs 1581 cr of Ramoji


The State government had issued yet another GO attaching another Rs 1581 crore belonging to the firms of Margadarsi Chit Funds Private Limited chairman Cherukuri Ramoji Rao. The orders were issued on Thursday directing the AP CID to take further steps.

The government had proposed attachment of Rs 226 crore of the Usha Kiran Media Limited and Rs 1355 crore of the Ushodaya Enterprises Private Limited. It was alleged that these funds were diverted by Cherukuri Ramoji Rao and Cherukuri Sailaja Kiran from the Margadarsi Chit Funds Private Limited.

The AP CID officials said that during the course of investigation it was fund that Ramoji Rao and Sailaja Kiran have diverted the subscribers deposits in Margadarsi to these two companies. AP CID SP Amit Bardar told the media persons that the diversion of money was against the rules of the AP Chit Fund Act.

Meanwhile, in a press release, the APCID said that Margadarsi collected signatures of some of the subscribers and filed cases in the high court on their behalf. The CID said that the subscribers were not told about the case. The representatives of the Margadarsi have collected the signatures and filed the cases, the CID said.

The CID also alerted the people against giving their signatures on any papers without reading them. The CID alleged that the Margadarsi representatives were fooling the subscribers by taking their signatures and filing the cases on their behalf.

CID DG Ch Srikanth made an appeal to the Margadarsi subscribers to check the safety of their money in the company as the government had issued attachment notice. The government had already issued two orders earlier on May 29, and June 15 for the attachment of Rs 1035 crore of the Margadarsi Chit Fund Company.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

AP CID summons Ramoji to its office on July 5


The AP CID, which is investigating alleged financial irregularities in Margadarsi Chit Fund Company Limited, had issued notice to its chairman Cherukuri Ramoji Rao on Thursday. The CID had asked Ramoji Rao to attend before the investigating officer at its headquarters in Guntur.

The CID also issued notice to Ramoji Rao’s daughter-in-law and Margadarsi managing director Cherukuri Sailaja Kiran and Margadarsi branch manager from Arundalpet in Guntur district.

The CID said that it had been questioning the persons concerned on the financial irregularities and required more information. It further wanted to examine all the three accused in the case ‘collectively and simultaneously’ to clarify some information.

The CID had already questioned Ramoji Rao and his daughter-in-law Sailaja Kiran in the past. Ramoji Rao was questioned while he was on the bed and the entire process of questioning was video graphed.

Sailaja Kiran was questioned earlier this month on her return from the US. She was questioned at her residence for 11 hours.

It is now to be seen if Ramoji Rao would accept the notice and attend the investigation by the CID or refuse on any grounds.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

AP CID requests Central agencies to take action against Margadarsi group


Andhra Pradesh CID, which is probing alleged financial irregularities by Margadarsi Chit Fund Private Limited (MCFPL), promoted by media baron Ramoji Rao, has requested the central enforcement agencies to probe alleged money laundering, corporate frauds and evasion of income tax by the company.

N. Sanjay, Additional Director General of Police, CID, told mediapersons in Hyderabad on Tuesday that the investigation so far shows that Margadarsi is involved in illegal activities like money-laundering, siphoning of funds, corporate frauds, helping ghost subscribers to indulge in benami transactions and evasion of income tax.

“As these violations pertain to the domain of central enforcement agencies, we have met the concerned agencies in Delhi and Hyderabad and requested them to take timely action against the company,” he said.

The Crime Investigation Department (CID) claims that the violations and fraudulent methods adopted by Margadarsi bear similarities to Satyam Computers, Sahara and Saradha chit fund fraud.

The official said that a deeper probe into the account books of Margadarsi is imperative to put a stop to this blatant exploitation by the Margadarsi group.

The Additional DGP said that instead of cooperating in the investigation, the accused are indulging in defaming and blaming the CID.

Stating that Margadarsi has a history of accepting deposits illegally, the CID alleged that the company through its violation of the Chit Fund Act 1982 is deriving undue benefits from subscriptions of common people by diversion of funds to their associate companies and other unknown investments clandestinely, and laundering money by accepting cash subscriptions in high amounts in violation of various prevailing laws.

It is also forcing the subscribers to retain their money continuously with the company in the name of offering interest and security by accepting deposits illegitimately, it said.

According to the CID, it has been established prima facie that the Margadarsi group is indulging fraudulent accounting practices, inflating cash balances in the name of cheques on hand and cash on hand at the branch level, not filing the mandatory balance sheets and accounts as per the Chit Fund Act, either at the branch level or with the registrar of chit funds at the state level, and not submitting the necessary documents to the regulators who are duty-bound to find out the genuineness of the bloated figures reported upon.

The ADGP said that seven FIRs were registered upon the complaint of the Commissioner and IG, Stamps and Registrations, under different sections of the Indian Penal Code, APPDFE Act 1999, and Chit Funds Act 1982.

In all these FIRs, MCFPL chairman Ramoji Rao, MD Sailaja Kiran, concerned branch managers (called foremen), the MCFPL company, and principal auditor K. Sravan have been cited as accused.

“All the accused were questioned once. However, they gave evasive answers and did not produce the required information or documents either to the chit registrar or to the CID,” Sanjay said.

According to the CID, Margadarsi group has violated many key provisions of the Chit Funds Act.

It diverted subscribers’ money to HUF controlled entities and also into high-risk stock market speculations such as mutual funds, violating the established laws of the land. It is forcibly taking deposits illegally in the guise of receipt against future subscriptions by offering them annual interest rate of 4-5 per cent, the CID said.

“Margadarsi group has not furnished the balance sheet and accounts as required under the Chit Funds Act, 1982. Instead, it is taking the plea that the preparation of financial statements as per the Companies Act is sufficient, which is completely incorrect and wrong,” it said.

The CID said that Margadarsi group has indulged in the fudging of its books and accounts by ‘window dressing’ the balance sheet and by not submitting the required information.

Movable properties of MCFPL worth over Rs 1,035 crore have been attached in the case so far.

The company has 108 branches in four states – Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. It has 37 branches and 1.04 lakh subscribers in Andhra Pradesh. The total number of chit groups is 2,351. The annual turnover of the company for Andhra Pradesh and Telangana during 2021-22 was Rs 9,677 crore.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.



[X] Close
[X] Close