Margadarsi Chit Fund Case: AP CID Attaches Properties Worth Rs 793 crores of Ramoji Rao 

Ramoji Rao, Chairman, Margadarsi Chit Fund Pvt Ltd (File photo) - Sakshi Post

Amaravati: Andhra Pradesh Crime Investigation Department (CID), which is investigating the Margadarsi Chit fund scam, on Monday attached the assets of company’s chairman Cherukuri  Ramoji Rao, who was named as an accused number 1 (A1) in the case. The CID team attached movable and immovable properties worth approximately Rs 793 crores belonging to Ramoji Rao.

During its investigation into the Margadarsi Chit fund scam, the CID officials have found irregularities, including diversion of depositors money into mutual funds and speculative markets for personal gains. The investigating agency has said the decision to attach the properties was taken in the interest of the depositors. 

“The collection of the amount by the chit fund company with a promise to give interest and later diverting funds to the risk of the stock market is a violation of Income Tax Act. Margadarsi Chit fund is operating its business across Andhra Pradesh with 37 branches in various districts. The chit fund company is not in a position to return the money to its subscribers,” the state CID said in a statement on Monday. 

The AP CID has already registered cases against Ch Ramoji Rao, Ch Sailaja, and Margadarshi Chit Funds managers and also their auditor for violating the provisions of the Chit Fund Act. The  AP CID has already arrested four branch managers and the auditor in this case.

On March 11th the CID registered a case against both of them for allegedly collecting money from the people for chit-fund schemes in violation of  RBI guidelines. The Margadarsi company was facing allegations of diverting subscribers' money into other companies and mutual funds. 

The case against Ramoji Rao was filed under Sections 120B, 409, 420, 477(A) read along with Section 34 of IPC. The case was registered under Section 5 of the AP Protection of Depositors of Financial Establishments Act, 1999. The CID has named Cherukuri Ramoji Rao as accused number 1 (A1) and Cherukuri Sailaja as accused number 2 (A2) while the respective bank manager is A3. 

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