Andhra Pradesh: Vundavalli accuses Ramoji Rao of violating law

Former Member of Parliament Vundavalli Arun Kumar has accused Eenadu group chairman Ch. Ramoji Rao of violating law in the Margadarshi chit fund episode.

Rajahmundry: Former Member of Parliament Vundavalli Arun Kumar has accused Eenadu group chairman Ch. Ramoji Rao of violating law in the Margadarshi chit fund episode.

Talking to reporters here on Monday, he alleged that Ramoji Rao had signed the balance sheet of the chit fund company in the capacity of chairman even while stating that he had no connection whatsoever with the company.

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“According to the RBI Act, Margadarshi has no right to collect deposits. Ramoji Rao, even while mentioning that he had nothing to do with Margadarshi chit fund company, claimed ownership of the chit fund company in the affidavit submitted to the Supreme Court. Under Sector 10, a chit fund company should not indulge in other businesses. Ramoji Rao used the Margadarshi funds to other businesses,” he stated.