Margadarsi Directed to Pay for Notices of Investors and Depositors

Hyderabad:The Telangana High Court directed Margadarsi Financiers to bear the expenses for the newspaper publication of a notice inviting claims or objections from their bonafide investors or depositors, regarding any grievances pertaining to deposits. The management of the firm has been asked to deposit the amount before the High Court registry.

It is pertinent to mention that the division bench, comprising Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao, had on August 20 directed the High Court registry to publish the notice and place its copy before the High Court. These orders were passed in the criminal petitions filed in 2011 by Margadarsi Financiers and Ramoji Rao, since deceased, seeking to stay the criminal prosecution against them on allegations of collecting deposits from investors in violation of RBI guidelines.

Based on a complaint filed by former MP Undavalli Arun Kumar in 2008, the then government ordered criminal prosecution against Ramoji Rao and others. The bench on Thursday clarified that the petitioner Margadarsi Financiers has to bear the expenses. The court will hear the case on October 1.