Andhra Pradesh issues public notices to Margadarsi subscribers in full-page newspaper advertisements

If there were any objections, the subscribers could write to it, said the registrar in the notice.

Meanwhile, MCFPL said these allegations were imaginary, arbitrary, and perverse, and the that state government was pursuing a vendetta against the the Ramoji Group and the Eenadu newspaper.

Also read: Ramoji Rao, daughter-in-law summoned by AP CID

The allegations

“It is common knowledge that the Andhra Pradesh Stamps and Registration Department has issued a number of winding-up orders related to certain chit groups operated by the Margadarsi Chit Funds Pt Ltd. These winding-up orders were contested by MCFPL and a few subscribers before the courts,” said CID Inspector General Ch Srikanth in a statement.

“It has come to the notice of the Registration and Stamps Department, which in turn informed the CID that some of these writ petitions allegedly filed by a few of the subscribers were fraudulently signed by misinforming the subscribers to obtain signatures by agents or interested members of MCFPL,” he added.

“Therefore we caution the subscribers of MCFPL to kindly read the documents produced before them for signatures by any agent or manager of MCFPL,” he continued.

Notably, the Andhra Pradesh Home Department issued orders on 27 July to attach movable assets belonging to MCFPL, which had made investments in the share capital of Usha Kiran Media Ltd and Ushodaya Enterprises Pvt Ltd.

It is worth noting that prior to this order, the authorities had already issued Government Orders N. 104 and 116, which led to the attachment of movable properties of MCFPL totalling ₹1,035 crore.

Also read: Andhra Pradesh wants ED, I-T to probe Margadarsi fraud

The case

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 3 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, his daughter-in-law and MCPL Managing Director 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 supremo and Andhra Chief Minister YS Jagan Mohan Reddy.

Jaga has often alleged that a gang of four (Dushta Chatustayam), including Ramoji Rao, was trying to destabilise his government to aid the N Chandrababu Naidu-led TDP’s return to power.

‘Govt pursuing vendetta’

MCFPL, in response to the public notices, said the Andhra Pradesh government was pursuing a vendetta.

“Margadarsi Chit Fund Pvt Ltd is a renowned and trusted brand in the chit fund industry, with 108 branches across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu with meticulous functioning and unwavering financial discipline for over six decades,” said the company as part of a nine-page statement.

“The company, over 60 years, has serviced over 60 lakh subscribers and disbursed over ₹1 lakh crore as prize money,” it added.

“Pursuing its vendetta against the Ramoji Group and Eenadu, the largest Telugu circulated daily, the Andhra Pradesh government has initiated a direct attack through a constant persecution and witch-hunting against Margadarsi Chit fund Pvt Ltd, which also belongs to Ramoji Group, by levelling baseless and non-existing allegations of financial irregularities,” said the MCFPL Group.

In continuation of its malicious agenda, the government — through its registrars — has now issued an advertisement in the print media in the form of a notice to subscribers levelling the same imaginary, arbitrary, and perverse allegations, said the statement.

“The registrars have gone on to make these allegations when the subject matter is still sub judice in court, and they have not filed any counters to writ petitions filed by the company,” said the MCFPL Group.