Margadarsi chits case: AP CID questions Ramoji Rao, Sailaja Kiran in Hyderabad

HYDERABAD: The Andhra Pradesh Crime Investigation Department (AP CID) on Monday began questioning media baron and Margadarsi Chit Funds Private Limited (MCFPL) Chairman Cherukuri Ramoji Rao and his daughter-in-law and Managing Director of the company Sailaja Kiran at their residence in Hyderabad. The grilling was part of a case that the AP CID has registered against the two in connection with alleged violations of rules in MCFPL activities.

According to reports, close to 20 officers and policemen of the AP CID descended on the residence of Sailaja Kiran on Road No. 36 in Jubilee Hills before the investigators began questioning the duo. Ramoji Rao, who owns the Eenadu Group and a vast empire of businesses, was named as A1 while his daughter-in-law Sailaja Kiran was included as A2 in the Margadari chit funds irregularities case.

On March 29, 2023, the AP CID served notices under Section 160 of the CrPC on Ramoji Rao and Sailaja Kiran summoning them for questioning in the case. In the summons, Ramoji Rao was directed to make himself available either at his residence or office on one of the dates on March 29, 31, April 3 or 6 and extend his cooperation for the investigation. On Monday, Ramoji Rao chose to be questioned at his son Kiran’s house in Jubilee Hills, along with daughter-in-law Sailaja Kiran.

Bedridden Ramoji appears for questioning with backpain

Dramatic scenes were witnessed during Ramoji Rao’s questioning on Monday at his son Kiran’s residence in Jubilee Hills. A picture emerging from his grilling showed him lying on a bed with a belt heavily strapped around above his waist for back support. According to sources, the veteran tycoon has been suffering from acute back pain because of which he had to attend the questioning while lying on a bed.

It was not clear if he had already sought an exemption from questioning due to his health concerns. There was no confirmation either from the AP CID on whether Ramoji Rao was asked to appear for the questioning despite his health issues. The picture showing Ramoji Rao lying on the bed at his son’s residence in Jubilee Hills has gone viral instantly.

What is the case?

The case against Ramoji Rao, Sailaja Kiran and a few others was registered by the CID at its police station in Mangalagiri of Andhra Pradesh related to Margadarsi chit fund business. They were charged with alleged violation of the AP Protection of Depositors Financial Establishment Act, 1999 and the Chit Fund Act, 1982.

Earlier on March 12, the CID conducted raids on multiple branches of Margadarsi across Andhra Pradesh before arresting four persons. A writ petition was filed in the Telangana High Court on March 14 by P Rajaji, Vice-President of Margadarsi Chit Fund Pvt Ltd, seeking that the AP CID be restrained from taking any coercive steps against Ramoji Rao and Sailaja Kiran, who reside in Hyderabad, besides any of the Margadarsi officials and employees.

Despite questioning the maintainability of the petition in Telangana High Court since the FIRs were registered in Andhra Pradesh, Justice B Vijaysen Reddy however directed the Andhra CID not to take any coercive steps against Ramoji Rao and Sailaja Kiran until further orders.

The CID informed the court that it had taken up the investigation based on complaints of irregularities received from the assistant registrar of chits against Margadarsi and the authorised foremen of its branches in Visakhapatnam, Vijayawada, Guntur, Eluru, Rajahmundry, Narasaraopeta and Anantapur.

The AP CID, in its report, claimed to have found that MCFPL had allegedly not transferred subscription amounts to the chit accounts, something that it is supposed to pay on par with the amount paid by the subscribers in each chit. Failing to maintain statutory ledgers was another charge made by the agency against Margadarsi.