Margadarsi Chit Fund Case: CID Case Against Media Baron Ramoji Rao, Sailaja

Amaravati: The Andhra Pradesh Crime Investigation Department (CID) registered a case against the Margadarsi Chit Funds Private Limited Chairman and media baron Cherukuri Ramoji Rao on Saturday. Ch. Sailaja was also booked in the case as she allegedly collected money from the people for chit-fund schemes by violating the RBI guidelines. The Margadarsi company was facing allegations of diverting subscribers' money into other companies and mutual funds. 

The case against Ramoji is filed under Sections 120B, 409, 420, 477(A) and this has to be 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. 

Earlier in the day, the CID officials conducted searches on the offices of Margadarsi Chit Funds Private Limited in the state. These raids were conducted across the offices of the chit fund company in Palnadu, NTR district, Guntur, Eluru, and other districts. It is reliably learned that the officials have detained a few office managers and accountants and verified the documents. 

What is Margadarsi Chit Fund Scam?

The Andhra Pradesh government has impleaded in the Margadarsi chit fund scam case by filing a special leave petition in the Supreme Court earlier this year. Margadarsi is accused of collecting money from its depositors in violation of Reserve Bank of India guidelines. 

The case against it was first filed by former Minister Undavalli Arun Kumar in 2006. However, the case was dismissed in 2014 by the High Court after Ramoji Rao disassociated from the chit fund company. In 2020, Arun Kumar approached the Supreme Court challenging the 2014 High Court verdict, after which the Andhra Pradesh government impleaded in the case. 

Also Read: ED Questioning of Kavitha in Delhi Liquor Scam Ends