APCID asks central agencies, other states to examine financial lapses by Margadarsi

VIJAYAWADA: The Andhra Pradesh Crime Investigation Department is taking up a detailed probe into the financial irregularities in Margadarsi Chit Fund Pvt Ltd by involving several central agencies to examine several aspects, initiate action and safeguard the interests of chit subscribers in AP and elsewhere.

CID additional DGP, N. Sanjay, said in a release here on Wednesday that specialised wings like income tax, enforcement directorate, the serious fraud investigation office of the Union ministry of corporate affairs etc would examine the Margadarsi case.

The preliminary findings in the Margadarsi case were intimated to the state DGP and the ADGP, CID as also commissioners of the stamps and registration department of Telangana, Tamil Nadu and Karnataka; chairman of the Central Board of Direct Taxes, the director of enforcement, the directorate of enforcement and the director, Serious Fraud Investigation Office.

The AP CID, in its investigations, found several illegal financial activities including non-payment of subscription amount into the chit account which the MCFPL was supposed to pay on par with the subscribers in each chit, violations in maintaining the mandated bank accounts, operation of an illegal scheme of deposits and covering up their defaults by offering 4 to 5 per cent interest on deposits secured from the chit subscribers.

This apart, the investigations would also cover the illegal diversion of funds to other investments, accepting large amounts of subscriptions in cash from the subscribers in violation of IT Act, non-deduction of TDS on the payment made and activities that indicate large- scale money laundering.

The CID additional DG said the Margadarsi firm was either directly or through its subsidiaries carrying out financial activities in multiple states. Serious financial irregularities are to be dealt with by not just the police department but by other departments also, he added.