Searches at Margadarshi Chit funds branches in AP
The raids were carried out in response to allegations made by former Congress MP Vundavalli Arun Kumar
HYDERABAD: The Stamps and Registration Department of Andhra Pradesh conducted simultaneous searches at the branches of Margadarshi Chit Fund Group at several locations including four in Vijayawada on Tuesday. Margadarshi is the flagship chit fund company owned by media baron Ch Ramoji Rao and was embroiled in a scam several years ago.
According to reports, the raids were carried out in response to allegations made by former Congress MP Vundavalli Arun Kumar, who demanded an investigation by the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI).
Addressing a press conference last week in Rajamahendravaram, the former MP, who had petitioned the Andhra Pradesh High Court in 2006 regarding an alleged scam, displayed the Margadarsi Chit Funds balance sheet for the years 2021–2022, claiming that Rao had signed it as the chairman of the business.
Arun Kumar claimed that Margadarsi Financiers, a group company of Margadarsi Chit Funds with offices in Hyderabad, had violated the Reserve Bank of India Act when it collected deposits. He also claimed that the business had received deposits worth 2,600 crore from customers.