AP CID serves notices on Ramoji, Sailaja in Margadarsi chit fund scam

Vijayawada: The Andhra Pradesh Crime Investigation Department has served notices separately on the Margadarsi Chit Fund chairman Cherukuri Ramoji Rao as also his daughter-in-law and managing director Cherukuri Sailaja in connection with the unlawful diversion of funds for investment in the speculative market.

The CID, in its notice, asked the two to be present at their residence/office on March 29, 31 or April 3 and 6 for evidence-taking.

The CID had recently carried out raids on chit fund firms including the Margadarsi, detected a series of violations and booked cases with regard to Margadarsi under sections 420,409, 120-B, 477 (a) read with 34 of IPC, section 5 of AP Protection of Depositors Financial Establishment Act, 1999 and Section 76, 79 of Chit Fund Act, 1982 at the CID police station in Mangalagiri in AP.

CID officials noted that there was no security to the deposits made by subscribers to Margadarsi as the foremen who acted as branch managers were having no role to play with the regard to the funds deposited. They simply forwarded the subscribers' money to the company’s head office in Hyderabad of Telangana.

The AP CID carried out search operations on 37 chit fund companies including 17 from Margadarsi during October and November last year. CID additional director general N Sanjay said the Margadarsi had resorted to a series of violations and a thorough probe was under way to safeguard the interests of the subscribers.

The IG of registrations and stamps, V Rama Krishna, hinted that the winding up of the Margadarsi chit fund company in AP was a possibility in view of the massive rule violations it has committed. There was no security to the deposited amounts, he said.