Vundavalli Criticises Naidu for Supporting Margadarsi Management
Kakinada: Former Rajamahendravaram Lok Sabha member Vundavalli Aruna Kumar has criticised Chief Minister N. Chandrababu Naidu for backing the Margadarsi management in the ongoing legal case against the chit fund company. Speaking to the media in Rajamahendravaram on Monday, Vundavalli accused Naidu of revealing his true colours by supporting Margadarsi and withdrawing related cases. He claimed that Naidu is setting a dangerous precedent by condoning Margadarsi's exploitation of legal loopholes, and argued that such a company should not receive support.
Vundavalli announced his intention to make the Andhra Pradesh government, particularly Chief Minister Naidu, a respondent in the case scheduled for September 11. He alleged that Naidu’s support for Margadarsi, which he claims has violated laws and engaged in financial irregularities, will erode public trust in the government and lead to significant financial losses for consumers.
He criticised the company's practice of showing a surplus of Rs. 400 crores on its balance sheet while reporting Rs. 300 crores in business losses. Vundavalli highlighted that Margadarsi uses future customer subscriptions as surplus, but fails to pay auction amounts promptly. He asserted that the company's practice of collecting outstanding amounts from deposits violates legal standards and undermines consumer protection. According to Vundavalli, the Reserve Bank of India mandates that chit fund businesses should not engage in other types of business or divert chit funds for other purposes.
In response to a question about cases involving three IPS officers, including former Intelligence IG P.S.R. Anjaneyulu, Vundavalli commented on Anjaneyulu's tenure as Superintendent of Police in Guntur and Vijayawada, stating that he was known for his tough stance against rowdy elements. He emphasized that Anjaneyulu, given his affluent family background, should not have been involved in bribery or irregularities. Vundavalli called on both the former Y.S.R.C. Government and the current Telugu Desam Government to avoid undermining the morale of IPS and IAS officers in their duties.