The Andhra Pradesh government issued a government order (GO) on Monday to attach movable properties worth Rs 793 crore belonging to Margadarsi Chit Fund Pvt. Ltd. (MCFPL) in connection with an alleged scam. The order was issued following a request from N Sanjay, Chief of the Crime Branch Department (CID), who is investigating the chit fund company for alleged financial irregularities and misappropriation of subscribers' funds, according to the news agency PTI.
CID Chief Sanjay stated that seven FIRs have been filed against Cherukuri Ramoji Rao, the Chairman of Margadarsi Chit Fund Private Limited, and his daughter-in-law, Cherukuri Sailaja, who serves as the Managing Director. These FIRs include charges under various sections of the Indian Penal Code (IPC), the Chit Funds Act, and other relevant laws. Sanjay emphasized that the state government is committed to protecting the rights and financial well-being of those affected by the alleged irregularities at MCFPL.
"The CID has requested permission from the Andhra Pradesh government to freeze any financial assets that could potentially be diluted by MCFL," said Sanjay, as quoted by PTI.
He further explained that this action is necessary to safeguard the resources and assets that rightfully belong to the subscribers. The CID chief will seek court approval to enforce these orders. Sanjay assured that the CID remains unwavering in its commitment to conducting a comprehensive and unbiased investigation into the Margadarsi chit-fund case.
Earlier, the CID conducted raids on several branches of Margadarsi Chit Fund Private Limited across the state, uncovering multiple violations. Cases have been registered under Sections 120(B), 409, 420, and 477(A) of the IPC, as well as Section 5 of the Andhra Pradesh Protection of Depositors Act and Sections 76 and 79 of the Chit Funds Act (1982) at the CID Police Station in Mangalagiri.