Margadarsi Chit Fund Scam: Auditor Arrested, Sent To 14 Days Remand

Margadarsi Chit Fund Scam: Brahmayya & Co Auditor Arrested - Sakshi Post

Vijayawada: The Andhra Pradesh Police CID probing the Margadarsi Chit Fund case arrested a chartered accountant on Thursday. Kudaravalli Shravan (44), a partner of Brahmayya & Co was taken into custody and  AP CID seized his laptop along with some records from his possession. Police produced Shravan before the Third Additional Chief Metropolitan Magistrate in Vijayawada on Thursday, who has sent him to judicial remand for 14 days.

As per reports Shravan admitted he had not done due diligence and, without following the due process of verification of the branch-level financial statements or bank statements, he had certified the annual financial statements of MCFPL. CID Chief and Additional Director General of Police (ADGP) N Sanjay issued a  statement to this effect where he revealed that the auditor flouted auditing norms and various levels including issuing financial statements and bank balances, both current and fixed deposits. He had also failed to provide confirmation of balances in banks, and could not explain the balances in the fixed deposits running into hundreds of crores of rupees.

Recently, the CID registered multiple FIRs against Margadarsi for alleged irregularities, including the diversion of depositors' money into mutual funds and speculative markets for personal gain. The CID also issued notices to Margadarsi MD Cherukuri Ramoji Rao and his daughter-in-law Cherukuri Sailaja to appear for questioning before the AP CID.

Also Read: Margadarsi Chit Fund Scam: AP CID Issues Notice To Ramoji Rao's Daughter-in-law Cherukuri Sailaja

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