Andhra Pradesh: CID arrests four foremen of Margadarsi Chit Fund
Four foremen of Margadarsi Chit Fund company were arrested by the AP Crime Investigation Department
Amaravati: Four foremen of Margadarsi Chit Fund company were arrested by the AP Crime Investigation Department (APCID) on Monday in connection with the ongoing probe into the alleged irregularities in the company.
The probe was taken up on a complaint from the Assistant Registrar of Chits against the foremen at Seethammadhara branch of Visakhapatnam, Rajahmundry, Eluru, Labbipeta in Vijayawada, Guntur, Narasaraopeta and Anantapur.
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During the investigation, the CID had noticed that the company was resorting to non-payment of subscription amount into the chit account which it was to pay on par with the subscribers in each group, violation in maintaining bank accounts to mask the fraudulent activities such as diversion of funds for other investments and running illegal deposits scheme.
According to officials, the company was subscribing for a minimum of one ticket to a maximum of 50 per cent of the tickets on the date of obtaining certificate of commencement of the chit.
Later, the tickets in excess of one were replaced with new subscribers. But the company was not paying the chit subscription on par with other subscribers and did not maintain statutory ledgers, they said.
It was also noted that the deficit amount was managed with the amount received from subscribers of one or more chit groups to pay the prized subscriber of another group and the foreman too was not paying the chit subscription.
