Vijayawada: The Andhra Pradesh government has issued an ad-interim order to attach movable properties worth Rs 242.03 crore belonging to the Margadarsi Chit Fund Pvt Ltd, which is involved in a chit fund scam.
With this, the government has ordered attachment of the company’s total assets worth Rs 1,035 crore in two phases, as Rs 793.50 crore worth of assets had earlier been attached.
Home principal secretary Harish Gupta issued GO Ms 116 on Thursday, allowing the AP CID to attach the properties of MCFPL worth Rs 242.03 crore.
Notably, the stamps and registration officials inspected the branches of MCFPL in the state on November 15, 2022 and noticed a host of offenses and violations of provisions of the Chit Funds Act, 1982.
The AP CID along with the stamps and registration authorities noticed that the chit fund collections from the branches were being transferred to the corporate office and the amounts, in turn, were being invested in mutual funds.
It was also found that MCFPL was engaged in criminal activities by creating an ingenious vicious cycle perpetrating fraud, cheating, criminal breach of trust and wrongful enrichment for its own gains at the cost of gullible chit subscribers, officials said.
The firm resorted to non-payment of subscription amount and violated the main bank accounts to mask its fraudulent activities, claimed the officials.
The AP CID’s additional DGP, in his report on the MCFPL, said that the firm was set up on August 31, 1962 in Hyderabad and was having 37 branches in AP with Ramoji Rao as its chairman, Sailaja as its managing director etc.
“The firm is operating chits ranging between Rs 50,000 and Rs 1,00,000. At present, there are 1,989 active chit groups operating in AP and 2,316 groups in TS. The firm’s chairman, MD, foreman and auditor conspired and committed the offenses.”
The AP CID in a statement on Thursday said that the state government’s two orders to attach assets worth Rs 1,035 crore reflected its commitment to uncover the truth and to protect the interests of chit subscribers and also to maintain transparency and accountability throughout the probe.
It said that the attached financial assets include various components like bank accounts, investments and other forms of moveable properties which were found to be connected with ongoing investigation in seven cases booked against MCFPL.
