Undavalli Arun Demands ED Probe Into Margadarsi Chit Fund Scam

Rajamahendravaram: Former MP Undavalli Arun Kumar appealed to the Andhra Pradesh government to have the Enforcement Directorate conduct a  probe into the irregularities unearthed in the cases involving Margadarsi Chit Fund Private Limited (MCFPL).

Speaking to the press on Tuesday Arun Kumar said that he was sending the information given to him by the Registrar of Companies in the past to the CID officials. He requested that the details be sent to the ED (Enforcement Directorate) for further investigation. He said that according to Section 14(2) of the AP Chit Fund Act, the amount collected through chit funds is deposited in the bank. He alleged that it was not happening as per the guidelines and that the funds were diverted into mutual funds and are being used for other businesses as well. He alleged that even today the Eenadu paper was running with the money of chit funds.

He revealed that one Rajaji, who signed an affidavit regarding the Rs.50 lakh defamation suit filed against him for questioning the relationship between Margadarsi Chit Funds and Ramoji Rao, has now stated in his latest affidavit filed in the Telangana High Court that Ramoji Rao is the chairman of Margadarsi. " Isn't this misleading the systems,” Undavalli asked. I have been asking the same question for the past 17 years but I have not received an answer till now, he remarked. In fact, by the time I filed a case against Margadarsi shares, the company was facing a loss of Rs.1,360 crore. However no action was taken against Ramoji because he is a celebrity, Arun Kumar scoffed.

Undavalli alleged that while the government has initiated action against the irregularities in Margadarsi chit funds case, the organization has not given any documents to the authorities. While Ramoji Rao made mistakes he is avoiding the penalty by making the foremen working in the branches responsible for his action. He said that Ramoji never admitted that he was wrong, no matter how many cases were filed, there were no records that he came to the trial court. Is he above the lay Undavalli questioned? If he hasn’t committed any crime why doesn’t he come out and state the same, he questioned.

Recently, state police CID registered multiple FIRs against Margadarsi Chit Fund Pvt Ltd for alleged irregularities, including the diversion of depositors' money into mutual funds and speculative markets for personal gain. Some employees of the company were arrested too. CID teams had also conducted raids at the Margadarsi branches in Visakhapatnam, Rajahmundry, Eluru, Vijayawada, Guntur, Narasaraopeta, and Anantapur recently.

Also Read: Andhra Pradesh: Four Margadarsi Chit Fund Employees Arrested