The CID gave a choice of four days to be available at their residence or the corporate office for examination as part of the investigation.
Published Mar 28, 2023 | 2:09 PM ⚊ Updated Mar 28, 2023 | 3:14 PM
Chairman Ramoji Rao and his daughter-in-law Sailaja Kiran have been named A1 and A2 in the Margadarsi Chit Fund fraud case. (Supplied)
The Andhra Pradesh Criminal Investigation Department (CID) has served summons under Section 160 of CRPC to media baron and Margadarsi Chit Fund Pvt Ltd (MCPL) Chairman Cherukuri Ramoji Rao and his daughter-in-law Cherukuri Sailaja, for questioning in an alleged chit fund fraud case.
Sailaja is the managing director of MCPL.
The CID gave a choice of four days — 29 and 31 March, and 3 and 6 April — for them to be available at their residence or the corporate office of MCPL at Fateh Maidan Road in Hyderabad for examination as part of the investigation.
“In view of the facts of the case, for effective investigation and to arrive (at) better conclusion, I, being the investigating officer of the crime, feel that your examination is just and necessary,” CID Deputy Superintendent of Police (DSP) Ravi Kumar said in the notice.
Requesting Rao and Sailaja to cooperate, the DSP asked them to intimate their convenient date, citing cases booked under IPC Sections 420, 120 B, 477 (a) read with 34 and Section 5 of AP Protection of Depositors Financial Establishment Act, 1999.
The official also cited cases booked under Sections 76 and 79 of the Chit Fund Act 1982 at the CID police station in Mangalagiri.
Recently, the CID had registered multiple FIRs across the state against MCPL, including Ramoji Rao as Accused No 1 (A1) and his Sailaja as A2 for a string of alleged irregularities, including the diversion of depositors’ money into mutual funds and speculative markets for personal gain.
The CID also arrested some employees of the company.
AP CID issued notice to Margadarsi Chit funds pvt Ltd chairman & medianbaron Cherukuri Ramoji Rao & his daughter in law & MD of the chit fund firm Cherukuri Sailaja. CID issued notices under section 160 crpc to examine at their residence/office & provided four different dates.… pic.twitter.com/MUkgRa6dYI
— SNV Sudhir (@sudhirjourno) March 28, 2023
Eenadu Group and its founder Ramoji Rao have often been criticised by YSRCP supremo and Andhra Chief Minister YS Jagan Mohan Reddy.
The chief minister has often alleged that a gang of four (Dushta Chatustayam), including Ramoji Rao, was trying to destabilise his government to aid the Opposition N Chandrababu Naidu-led TDP’s return to power.
Both Ramoji Rao and Sailaja Kiran had approached the Telangana High Court against the CID FIRs.
Justice K Surender of the Telangana High Court on 22 March directed the Andhra Pradesh CID not to take any coercive steps against Ramoji Rao and Sailaja.
Making clear the jurisdiction issue of how the Telangana High Court can issue orders against the cases registered in Andhra Pradesh, the judge also said that the head office of the MCPL is in Hyderabad.
Acting on complaints by the Assistant Registrars of Chits, FIRs were lodged in Visakhapatnam, Kakinada, Eluru, Vijayawada, Guntur, Palnadu, Kurnool, and Ananthapuramu.
Following the registration of the FIRs, multiple teams of the CID launched searches at the premises of MCPL at Visakhapatnam, Rajamahendravaram, Eluru, Vijayawada, Guntur, Narasaraopet and Ananthapuramu branches on Saturday.
“The foremen of these branches are being questioned about the alleged fraud and statements are being recorded. All the records are being examined and incriminating documents are being seized. The foremen of the Narasaraopet, Eluru, and Ananthapuramu branches are absconding. The search process is still going on,” said a senior official of the CID.
Later foremen of some branches were also arrested and produced before relevant magistrate courts also.
The Stamps and Registration Department of Andhra Pradesh — being the regulating authority of the Chit Fund Business — conducted inspections/searches on branches of MCPL during October and November last year, along with other chit fund companies.
During the search, non-cooperation of the foreman and their staff was noticed and several irregularities and violations of rules and regulations were unearthed, said the CID official.
The inspection teams found non-payment of monthly subscriptions/instalments in respect of multiple tickets held in the name of MCPL, which were later substituted with new subscribers.
Also, the foreman, instead of depositing the future subscription amount into the second account — as per the provisions of Section 22 of the Chit Fund Act — was transferring the said amount to the Corporate Office Account. They also issued a “receipt” carrying interest at 4-5 percent in the name of the subscriber.
“Non-disclosure of revenue and expenditure accounts, statement of assets and liabilities, and details of investment as per Rule 28 read with Section 24 of the Chit Fund Act have also been noticed,” said the CID.
