Hyderabad: Telangana High Court on Tuesday directed the Andhra Pradesh CID department not to take any coercive steps against the chairman and managing director of Margadarsi Chit Fund Private Limited (MCFPL), in relation to FIRs registered against them in Andhra Pradesh for diverting their subscribers’ money for personal gain.
The owners filed separate petitions in the High Court seeking retraining of action against them by the AP investigation department.
Quashing the claim of how Telangana HC can issue orders against cases registered in AP, the bench headed by justice Justice K. Surender made it clear that the court can lay its judgement within its jurisdiction, highlighting that the head office of the Margadarsi is in Hyderabad.
Margadarsi was diverting subscribers’ money for personal gain
Commissioner and Inspector General of the registration and stamps department on Tuesday revealed that MCFPL was diverting its subscribers’ money for personal gain.
Investigations revealed that Rs 459.98 crore were invested in mutual funds, government securities and equity instruments, both quoted and unquoted, including subsidiaries and associates by MCFPL.
After raiding various branches of MCFPL in Andhra Pradesh, the CID in mid-March registered FIRs against MCFPL chairman Ramoji Rao, managing director Sailaja Kiran and the concerned branch managers and remanded them in judicial custody.
“MCFPL is occupying vacant chits in addition to foreman chits. For the mandatory chit ticket to be in the name of the foreman as well as for the extra tickets occupied by the company in a chit group, the foreman is not contributing anything to the kitty of the chit,” said a release from the stamp department on Tuesday.
“However, every month, MCFPL claims 5 percent of the chit amount as its foreman’s commission without paying the subscription amount. On evaluating five chit groups in Guntur district, it was observed that the foreman had so far claimed Rs 1,18,35,000 as commission and Rs 1,73,00,000 as the gross chit amount, which could be claimed by the foreman in the second month of the chit,” the press note read.
MCFPL further failed to show proof of payment of Rs 6,98,71,445 towards its subscription to the chits being managed by it and where it was responsible to pay on par with other chit group subscribers for the foreman’s ticket and other tickets in a chit group held by the foreman.
“On evaluating 12 chits in Vizianagaram, it was observed that the foreman had so far claimed Rs 60,50,000 as commission and Rs 1,05,50,000 as the gross chit amount,” concluded the department.
“The failure to pay its obligatory chit subscription, but fully availing the full chit amount and foreman’s commission in the chit groups, gives huge wrongful gains to MCFPL,” it added.
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