Andhra Pradesh Stamps and Registration Department officials conducted searches at Margadarsi Chit Fund offices across the state on Tuesday. Officials found several irregularities in the activities of chit funds, including diversion of money collected from people through chits.
Officials, during the initial search, found that the chit fund company owned by Cherukuri Ramoji Rao of the Eenadu Group had violated the rules and regulations of the Reserve Bank of India and the Chit Fund Act 1971.
There have been cases of violation of Margadarsi’s rules in the past as well. The cases were filed based on a complaint filed by then Congress MP Vundavalli Arun Kumar. Although the Telangana High Court dismissed the case days before the bifurcation of the state, the former Congress MLA challenged the high court’s orders in the Supreme Court.
The state government also filed an impleaded petition in the Supreme Court against Margadarsi Chit Funds. On the other hand, Ramoji Rao also started a political battle against the ruling YSR Congress through his media group Eenadu.
As things stand here, Stamps and Registration Department officials raided all the offices of Margadarsi Chit Fund Company. Reports say officials seized some company records during the preliminary search.
It remains to be seen how Ramoji Rao would respond to these quests in his Eenadu paper and Etv news. It is quite interesting that no media in Andhra Pradesh reported these searches of the Margadarsi Chit Fund by the state government officials.
They raided 18 Chit Fund Companies in the state including Margadarsi Chit Fund Company.