Kakinada: Rajya Sabha member Pilli Subhashchandra Bose and Rajamahendravaram MP Margani Bharat have defended the action AP CID has taken against Jagajjanani Chit Fund Company.
Speaking to media at Rajamahendravaram on Tuesday, they accused Jagajjanani chits of enrolling subscribers and diverting their funds to other businesses on the lines of Margadarsi. They pointed out that such diversion of funds violates the AP Chit Funds Act, which stipulates that monies deposited by subscribers should be kept only in nationalised banks.
Incidentally, Jagajjanani Chit Fund Company is run by Telugu Desam leader Adireddy Appa Rao and his son Adireddy Srinivasa Rao.
The two MPs hastened to add that there is no political motive in AP CID acting against Jagajjanani. They maintained that the CID action is not a vindictive act, as is being alleged by opposition parties. They said political parties are only trying to sling mud at the YSRC government.
Bharat pointed out that many chit fund companies divert funds to other businesses in violation of the law. They subsequently down shutters, thereby cheating subscribers of their precious money. He referred to many companies, such as Sarada, Sahara, Satyam, Agirgold, Call Money and Jayalakshmi in Kakinada, which have cheated lakhs of subscribers.
The MPs pointed out that Sarada Chits scam had even rocked the Parliament. They demanded that the government take stringent action against all chit fund companies that are cheating their subscribers and not maintaining their funds as stipulated by law.
