CID cautions chit subscribers against signing on papers without verification

Vijayawada: The state CID has cautioned the Margadarsi Chit Funds subscribers against appending their signatures on documents at the behest of any agent or manager without proper verification.

They were being misled to sign on some papers to file petitions in courts as part of a move to stall closure of certain chit groups, CID SP Amit Bardar told the media here on Friday. He said some chit subscribers were withdrawing their petitions in courts.

"Upon inquiry, they found that MCFPL agents or managers were misleading some chit subscribers to obtain their signatures and filing petitions in their names. After realising the folly, some of them started withdrawing their petitions." He advised the subscribers to read the documents, if any, produced before them, before signing.

The stamps and registration department issued orders to several MCFPL chit groups to wind them up for norms violations in running them while Margadarsi and a few subscribers challenged such orders in courts.

The AP CID is conducting an investigation into seven cases filed against some key persons and entities including Ramoji Rao, Sailaja Kiran, branch managers and MCFPL as accused number, one, two, three and four respectively.

On July 27, the home principal secretary issued GO - 134 to attach movable assets of MCFPL as it made investment in the share capital of Usha Kiran Media Ltd and also in Ushodaya Enterprises Pvt Ltd.

Earlier, the state government issued two more GOs 104 and 116, granting permission to attach movable assets of MCFPL worth Rs  1,035 crore.

The state CID, in two criminal cases of 3/2023 and 8/2023, filed charge-sheets against 15 individuals including Ramoji Rao, Sailaja Kiran, branch managers, MCFPL and others as accused. The charges included criminal conspiracy (120-B), criminal breach of trust (409), falsification of accounts (477(A)-V) and violations of section 5 of AP depositors of financial establishment act and under the chit fund act.

The SP said the AP CID was dedicated to conduct a thorough and impartial investigation into the cases booked against the MCFPL to ensure that justice would prevail.