Ramoji Rao And Daughter-In-Law Sailaja Summoned By CID In Margadarsi Chit Fund Case

The two were served notices under Section 160 CrPC and were asked to be available for examination at their residence or office on March 30, 31 or on April 3 or 6 and cooperate with the investigation.

Andhra Pradesh CID Serves Notices To Margadarsi Chit Fund Private Limited Chairman Ramoji Rao, MD Sailaja

The Crime Investigation Department (CID) of Andhra Pradesh served notices to Cherukuri Ramoji Rao, the Chairman of Margadarsi Chit Fund Private Limited, and his daughter-in-law and Managing Director Sailaja Cherukuri on Tuesday. The two were served notices under Section 160 CrPC and were asked to be available for examination at their residence or office on March 30, 31 or on April 3 or 6 and cooperate with the investigation.

Chit fund scam | Andhra Pradesh CID serves notices to Cherukuri Ramoji Rao, the Chairman of Margadarsi Chit Fund Private Limited and his daughter-in-law and Managing Director Sailaja Cherukuri asking them to be present at their residence/office on March 29 or March 31 or April 3…

— ANI (@ANI) March 28, 2023

Notices have been served for alleged fraud, diverting of deposits into mutual funds that are subject to the risks of the capital markets, and violations of the Chit Fund Business Act and Reserve Bank of India (RBI) rules.

Earlier, CID carried out a series of raids on various branches of Margadarsi Chit Fund Private Limited across the State and found a series of violations and cases had been registered under Sections 120(B), 409, 420, 477(A) read with 34 of IPC, section 5 of Andhra Pradesh Protection of Depositors and section 76, 79 of Chit Funds Act (1982) at CID Police Station at Mangalagiri.

In 2006, former Congress MP Vundavalli Arun Kumar appealed to the Andhra Pradesh government to write to the Securities and Exchange Board of India (SEBI), asking it to probe into the irregularities unearthed in the cases involving Margadarsi Chit Fund Private Limited.

Arun Kumar alleged that the Margadarsi Chit Fund Private Limited did not deposit the money collected from chit-fund subscribers in any national bank, violating the Chit Fund Business Act and Reserve Bank of India (RBI) rules.

However the case was dismissed in 2014 by the High Court after Ramoji Rao disassociated from the chit fund company. In 2020, Arun Kumar had approached the Supreme Court challenging the 2014 High Court verdict, after which the Andhra Pradesh government impleaded the case.

(With inputs from ABP Desam — It is a Telugu platform of ABP News. For more news, commentary and latest happenings from two Telugu states, follow https://telugu.abplive.com/)