SC orders Margadarsi Financiers to submit details of depositors

Vijayawada: The Supreme Court on Tuesday directed Margadarsi Financiers to submit details of depositors, who have invested ₹ 2,600 crore, and sought to know whether the firm was a proprietary concern of belonged to HUF (Hindu undivided family) by July, when the next hearing is likely to be held.

A division bench of Justice Surya Kant and Justice J.B. Pardiwala asked the firm to submit the names of investors, their addresses and the quantum of money deposited. It also asked how many depositors were paid back, how much they were paid and when.

Margadarsi Financiers’ counsel Siddartha Luthra submitted to the bench that the details had already been submitted to the Reserve Bank of India (RBI), but Undavalli Aruna Kumar, appearing as a party in person, contended that the details were not submitted to the RBI.

Accordingly, the bench directed the firm’s counsel to submit the details.

The bench also asked for clarity on the status of the Margadarsi Financiers, stating that it was sometimes mentioned as a HUF and sometimes as a proprietary concern.

The bench also sought details on discrepancies in the Margadarsi Financiers’ auditor’s report, which stated the deposited amount of ₹ 2,596 crore was returned, with a balance amount of ₹ 5.33 crore yet to be returned to a few depositors.

When Andhra Pradesh government’s counsel S. Vaidyanathan on Monday approached the apex court for two weeks to submit a rejoinder in the case, after learning that the case would come up for hearing on Tuesday, Margadarsi Financiers’ counsel Siddartha Luthra raised an objection. Accordingly, the case was listed for hearing on Tuesday.