VIJAYAWADA: Irrigation minister Ambati Rambabu on Friday has brushed aside allegations that the state government was victimising Margadarsi Chit Fund Company.
Addressing the media here, he underlined that the stamps and registration department had conducted raids against various chit fund companies across the state for violation of laws. Margadarsi is only one among them. “No one can escape from law after committing financial irregularities,” Rambabu maintained.
The minister said Margadarsi chits was delaying payment of prize money to chit subscribers citing lack of sureties. “In reality, payment is being held back as company reinvests chit amounts in other group companies of Margadarsi. This has been going on for the past five or six decades,” he pointed out.
He further charged that instead of maintaining separate individual accounts for each subscriber, the chit fund company was maintaining a single account for all, ignoring all norms.
Rambabu underlined that such malpractices have come to light during the recent raids by stamps and registration department officials. He has appealed to all new Margadarsi subscribers to be cautious about their financial dealings with the company.
The minister declared that all individuals and companies must abide by law while running their business enterprises.
“The Margadarsi chief cannot claim that the government was resorting to victimisation,” he asserted. He alleged that the company is still collecting deposits even after filing an affidavit in court claiming that it was not accepting any deposits.
On penalties imposed by the AP High Court on Ippatam villagers for misleading judiciary, Rambabu blamed the Telugu Desam and Jana Sena for unnecessarily raising a hue and cry against the government to hoodwink people and spread falsehoods. “These parties are not even hesitating to cheat courts,” he remarked.
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