The petition was filed by Margadarsi seeking to quash the FIR issued on the complaint lodged by one Yuri Reddy.
MCFPL was founded by Cherukuri Ramoji Rao in October 1962, and is considered one of the largest chit fund companies in the country, with around 108 branches operating in four states. (Creative Commons)
The Andhra Pradesh High Court on Wednesday, 18 October, adjourned to 6 December the hearing on a petition filed by Margadarsi Chit Funds Private Ltd (MCFPL) seeking to quash the FIR issued on the complaint lodged by one Yuri Reddy.
The court ordered notices to the Andhra Pradesh Crime Investigation Department (CID) and Yuri Reddy to file counters.
Media baron Ch Ramoji Rao and Margadarsi financers MD Ch Sailaja Kiran, in their petitions, sought quashing of the FIR issued by the CID after Yuri Reddy lodged a complaint that he was threatened at gunpoint to sign on blank papers when he had sought the transfer of shares, which originally belonged to his father GJ Reddy, of Margadarsi.
The CID registered a case against them, listing Ramoji Rao as A1 and Sailaja Kiran as A2. The high court also stayed the investigation into the case by the CID for eight weeks.
MCFPL was founded by Cherukuri Ramoji Rao in October 1962, and is considered one of the largest chit fund companies in the country, with around 108 branches operating in four states: Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka.
MCFPL has more than 4,000 employees and three lakh subscribers.
The CID estimates the turnover of the Margadarsi Group in Andhra Pradesh and Telangana to be ₹9,677 crore.
It was in March that CID registered multiple FIRs across the state in the alleged chit-fund fraud committed by the Ramoji Group-owned MCFPL and launched an investigation.
The CID, named Ramoji Rao, Sailaja Cherukuri, and branch managers in the FIRs.
Acting on complaints by the assistant registrars of chits, the FIRs were lodged in Visakhapatnam, Kakinada, Eluru, Vijayawada, Guntur, Palnadu, Kurnool, and Ananthapuramu.
The FIRs were registered under Sections 120(B), 409, 420, and 477(A), read with Section 34 of the Indian Penal Code.
They also invoked Section 5 of the Andhra Pradesh Protection of Depositors in Financial Establishments Act of 1999, and Sections 76 and 79 of the Chit Funds Act of 1982.
The Eenadu Group and its founder Ramoji Rao have often been criticised by YSRCP chief and Andhra Chief Minister YS Jagan Mohan Reddy.
Jagan has often alleged that a gang of four, which he refers to as Dushta Chatustayam, including Ramoji Rao, was trying to destabilise his government to aid the N Chandrababu Naidu-led TDP’s return to power.
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