AP govt. issues GO to CID to attach assets worth Rs 793 crore of Margadarsi Chit Fund

The Andhra Pradesh CID has already arrested four branch managers and the auditor in this case and registered cases against Ch Ramoji Rao, Ch Sailaja, and Margadarshi Chit Funds managers.

Amaravati: The Andhra Pradesh government issued GO 104 for the Crime Investigation Department (CID) to attach properties worth Rs 793 crores to Margadarsi Chit Fund Pvt. Ltd. in a chit fund scam on Monday.

Home Principal Secretary Harish Gupta issued GO 104 and an ad-interim order for the attachment of MCFPL’s properties, giving the additional director general of police, CID, the appropriate authority to take custody of the attached moveable items, have control over them, and file a court application.

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The CID stated in the statement that “a violation of the Income Tax Act occurs when money is collected by a chit fund firm under the promise of interest and then transferred to the risky stock market. Margadarsi Chit Fund has 37 branches located in different districts and runs its business throughout Andhra Pradesh. The chit fund business is unable to reimburse its subscribers for their money.”

“మార్గదర్శి కేసులో రామోజీ ఆస్తులను అటాచ్ చేసిన సీఐడీ”

రూ.793 కోట్ల విలువైన ఆస్తులను అటాచ్ చేసిన సీఐడీ. మార్గదర్శి ఛైర్మన్, మేనేజింగ్ డైరెక్టర్, ఫోర్ మెన్, ఆడిటర్ కుట్రతో నేరానికి పాల్పడినట్టు తెలిపిన సీఐడీ. మార్గదర్శి చిట్స్ ద్వారా సేకరించిన డబ్బును హైదరాబాద్ కార్పొరేట్ ఆఫీసు… pic.twitter.com/3u8Y6uq62j

— YSR Congress Party (@YSRCParty) May 29, 2023

The Andhra Pradesh CID has already arrested four branch managers and the auditor in this case and registered cases against Ch Ramoji Rao, Ch Sailaja, and Margadarshi Chit Funds managers.

Under Sections 120B, 409, 420, and 477(A) of the IPC, read along with Section 34, a case was filed against Ramoji Rao. The AP Protection of Depositors of Financial Establishments Act of 1999’s Section 5 was used to register the lawsuit. The respective bank manager is listed as A3, while Cherukuri Ramoji Rao and Cherukuri Sailaja are the CID’s first and second accused persons, respectively.