Hyderabad: The Supreme Court on Monday (August 10) issued notices to Eenadu Group Chairman Ramoji Rao and Margadarsi Financiers for allegedly collecting around Rs. 2,600 crore in violation of RBI guidelines.
The SC was hearing a petition by former Rajamundry MP Undavalli Arun Kumar challenging the judgment of the erstwhile Telangana and Andhra Pradesh High Court. Senior Advocate SS Prasad appeared for the petitioner during the hearing of the Special Leave Petition (SLP).
A three-judge SC bench headed by Justice Ashok Bhushan allowed the Reserve Bank of India and former IG Krishna Raju to be implicated in the case. Raju had earlier filed this case before the first Chief Metropolitan Magistrate, Hyderabad, which was quashed by the High Court on December 31, 2018.
Advocate Prasad argued that the High Court had wrongly dismissed the case. The HC held that Ramoji Rao’s Hindu United Family (HUF) is not a company, firm or group of persons and the provisions of Section 45 (S) of the RBI Act, 1934 are not applicable in this case.
Notifications are also issued to the states of Telangana and Andhra Pradesh along with the above. The next hearing, in this case, will be held after all parties involved have responded in writing to the notices.