Hyderabad:The two Telugu states took a divergent stand over the continuation of criminal proceedings against Margadarsi Financiers and Ch. Ramaji Rao, who died recently, for accepting deposits from the public in violation of Section 45S of the RBI Act. The section says that any individual or firm or unincorporated association is not allowed to collect deposits.Following orders of the Telangana High Court directing the two states to submit their stand, the Andhra Pradesh government filed counter requesting dismissal of the criminal petition filed by Margadarsi Financiers which had requested the quashing of the proceedings against it. The AP government requested the court to adjudicate the necessity of continuation of criminal proceedings against the firm.Further, the AP principal secretary, home, requested the court to pass appropriate orders on transferring of unclaimed amount of `5.15 crore, lying in an escrow account maintained by Margadarsi Financiers in the Union Bank of India at Saifabad, either to the state government or the Reserve Bank of India.The Telangana government did not convey its stand and asked the court to pass appropriate orders. The Telangana government simply repeated the important incidents from the registering of the case against Margadarsi Financiers and Ramoji Rao during the tenure of the late Y.S. Rajashekar Reddy as Chief Minister of undivided AP till the Supreme Court reverted the issue to the Telangana High Court.On Friday, when the matter came to before a division bench of Justice P. Sam Koshy, his companion judge Justice Nandikonda Narsing Rao recused from the case as had appeared for the firm when he was an advocate.The bench directed the High Court Registry to place the case before acting Chief Justice Sujoy Paul to allot the case to another bench.
Source link
