Margadarsi Chit Fund Case:  Yet Another Major Shock to Media Baron Ramoji Rao

Vijayawada: In another major setback to the media baron Cherukuri Ramoji Rao, the Andhra Pradesh Crime Investigation Department (AP CID) on Thursday reportedly attached properties belonging to the Chit Funds group worth Rs 242 crore in connection with the Margadarsi Chit Fund scam.

As part of its investigation in the case, the AP CID has questioned company’s chairman  Ramoji Rao and Cherukuri Sailaja who is accused number 2 (A2) in the case. 

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 11, 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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