HYDERABAD: The Telangana High Court on Friday expressed anger at the Telangana and Andhra Pradesh governments for the delay in submitting their contentions on the criminal proceedings against Margadarsi Financiers and its chairman, the late Ch. Ramoji Rao.
The allegations against Margadarsi and its management were that they had collected deposits from the general public, without RBI approval. Based on the complaint of then Congress MP Undavalli Arun Kumar, the undivided Andhra Pradesh government had initiated criminal proceedings, which were challenged by Margadarsi and Ramoji Rao in 2011.
Their contentions were dismissed by the then combined High Court on December 31, 2018, the last day before the constitution of separate High Courts for Telangana and Andhra Pradesh, subsequent to which the Supreme Court reverted the matter to the Telangana High Court.
After the demise of Ramoji Rao, his legal representatives sought that they be substituted as petitioners. It was allowed by the High Court.
After re-commencing hearing in June 2024, following the directions of the Supreme Court, the Telangana High Court directed the Telangana and AP governments to file their counters.
The two state governments did not do so. This irked a division bench, comprising Justice Sujoy Paul and Justice G. Radha Rani, which was hearing the case on Friday. Taking a serious view of this lethargy, the court cautioned counsels for both governments to file the counters within three weeks failing which the court would contemplate serious action.
The bench said that the court may direct the personal presence of the principal secretaries in person or through video conferencing.
The bench also directed the registry of the High Court to inform the advocate generals of both states to convey the orders to their respective state governments and adjourned the hearing to January 31.
Meanwhile, Margadarsi Financiers filed a rejoinder to RBI’s contentions that criminal proceedings be continued in the case.
On Friday, senior counsel L. Ravichander, appearing for RBI, submitted that the central bank would file a rejoinder of Margadarsi’s counter and sought three weeks’ time, which the court accepted.
Further, the court directed Margadarsi Financiers to supply a copy of the rejoinder affidavit to the de-facto complainant Undavalli Arun Kumar by January 6.
