Govt orders CID to attach Rs 242 crore assets of Margararsi Chit fund

Last month, CID attached properties worth Rs 7.93 crore as directed by the Andhra Pradesh government

Amaravati: The Andhra Pradesh government on Thursday directed the Criminal Investigation Department (CID) to seize movable assets worth Rs 2.42 billion of Margadarsi Chit Fund Private Limited (MCFPL) promoted by media tycoon Ramoji Rao.

The government issued an interim order in response to a request by the Criminal Investigation Department to add a police chief.

According to the investigation agency, it was noticed during the inspection that some chattels were stored under the name of the accused enterprise.

The order was issued under Sections 3 and 8 of the Andhra Pradesh Financial Institutions Depositors Protection Act, 1999.

The order said the Department of Criminal Investigation, Andhra Pradesh, Mangalagiri and competent authorities are required to take necessary further action on the matter as stipulated in the said Act and Rules and submit a compliance report to the government.

During inspections, the investigative agency found that the company had misappropriated funds for other purposes in violation of the rules and regulations of the Reserve Bank of India (RBI).

Last month, CID attached properties worth Rs 7.93 billion as directed by the government.

The investigators have previously filed charges against individuals involved in the breaches, including Ramoji Rao (director), Sailaja Kiran (managing director) and several others linked to the company’s 37 branches.

The CID has registered seven First Information Reports (FIRs) against Ramoji Rao and his daughter-in-law Sailaja Kiran. FIRS is registered under Sections 120(B) (Criminal Conspiracy), 409 (Criminal Breach of Trust), 420 (Deception) and 477(A) and Section 34 (False Accounts) of the Indian Penal Code, Section 5 of 1999 Sections 76, 79 of the Andhra Pradesh Financial Institutions Depositors Protection Act and Checking Funds Act, 1982.