The crime investigation department (CID) of Andhra Pradesh on Monday served notices to the chairman of Margadarsi Chit Funds Private Limited (MCFPL) Cherukuri Ramoji Rao, his daughter-in-law and managing director of MCFPL Cherukuri Sailaja and branch managers of various branches of the chit fund company.
Amaravati,UPDATED: Mar 28, 2023 11:08 IST
AP CID has served notices to media baron Ramoji Rao, daughter-in-law Sailaja in Margadarsi chit fund case. (File photo)
By Apoorva Jayachandran : The crime investigation department (CID) of Andhra Pradesh on Monday served notices to the chairman of Margadarsi Chit Funds Private Limited (MCFPL) Cherukuri Ramoji Rao, his daughter-in-law and managing director of MCFPL Cherukuri Sailaja and branch managers of various branches of the chit fund company.
Notices have been served for alleged cheating, diversion of deposits into mutual funds, which are contingent on capital markets’ risks and violation of Chit Fund Business Act and Reserve Bank of India (RBI) guidelines.
The move came after CID officials received multiple complaints from assistant registrars of various districts in connection with the Stamp and Registration department raids on the offices of Margadarsi Chit Fund Pvt Ltd during October and November months last year.
Earlier, a case 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).
During earlier searches, it was allegedly found that the chit fund collections from the branches were being transferred to the corporate office and the huge amounts were being invested in mutual funds.
