By Express News Service
NEW DELHI/VIJAYAWADA: The Supreme Court on Tuesday directed Margadarsi Chit Fund Private Limited (MCFPL) to submit records to show that they have refunded the deposit money to investors.It may be noted that media baron Ch Ramoji Rao is the chairman of the company in question. The bench, comprising Justices Surya Kant and JB Pardiwala, was hearing a petition filed by Undavalli Arun Kumar seeking an investigation into the alleged scam. He accused the company of collecting Rs 2,600 crore deposits in violation of the Reserve Bank of India (RBI) guidelines.
Further, the former MP and senior advocate, who argued against the firm, also alleged that MCFPL did not deposit the money collected from chit fund subscribers in any national bank, violating the Chit Fund Business Act and RBI rules.
The Supreme Court sought to know how much money was invested in Margadarsi and how much was repaid. How many depositors were repaid? Was the amount repaid in cash or through cheque?When the firm’s advocate informed the court that all depositors were repaid, the court asked what was objection in disclosing the details? Last year, the SC had issued notices to Ramoji Rao, the RBI and Telangana government in chit fund case.
The AP government had filed an SLP in the apex court after the AP HC in 2018 had quashed the complaint on the ground that a Hindu Undivided Family (HUF) does not fall within the ambit of the term “unincorporated association of individuals”.
“When a complaint involves criminal offences which are of a heinous nature, or which are dealt with in special statutes, or which compromise offences against society at large, the High Courts ought to refrain from exercising their inherent powers and quashing complaints under Section 482 of the CrPC, even if a compromise has been reached between the parties,” AP government’s plea had stated.CID has carried out a series of raids on various branches of MCFPL. Cases were registered under various sections of IPC, AP Protection of Depositors and Chit Funds Act.
Undavalli termed the Supreme Court’s order in the case a very important development. “Pointing out that MCFPL has been described as an HUF at one place and proprietary in another, SC has sought a clarification on the same,” he observed. “From the very beginning, my argument has been that collecting the amount itself was wrong. Finally a major push has been given to the case and let us hope, it is brought to a logical conclusion,” he said.
NEW DELHI/VIJAYAWADA: The Supreme Court on Tuesday directed Margadarsi Chit Fund Private Limited (MCFPL) to submit records to show that they have refunded the deposit money to investors.
It may be noted that media baron Ch Ramoji Rao is the chairman of the company in question. The bench, comprising Justices Surya Kant and JB Pardiwala, was hearing a petition filed by Undavalli Arun Kumar seeking an investigation into the alleged scam. He accused the company of collecting Rs 2,600 crore deposits in violation of the Reserve Bank of India (RBI) guidelines.
Further, the former MP and senior advocate, who argued against the firm, also alleged that MCFPL did not deposit the money collected from chit fund subscribers in any national bank, violating the Chit Fund Business Act and RBI rules.
The Supreme Court sought to know how much money was invested in Margadarsi and how much was repaid. How many depositors were repaid? Was the amount repaid in cash or through cheque?
When the firm’s advocate informed the court that all depositors were repaid, the court asked what was objection in disclosing the details? Last year, the SC had issued notices to Ramoji Rao, the RBI and Telangana government in chit fund case.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
The AP government had filed an SLP in the apex court after the AP HC in 2018 had quashed the complaint on the ground that a Hindu Undivided Family (HUF) does not fall within the ambit of the term “unincorporated association of individuals”.
“When a complaint involves criminal offences which are of a heinous nature, or which are dealt with in special statutes, or which compromise offences against society at large, the High Courts ought to refrain from exercising their inherent powers and quashing complaints under Section 482 of the CrPC, even if a compromise has been reached between the parties,” AP government’s plea had stated.CID has carried out a series of raids on various branches of MCFPL. Cases were registered under various sections of IPC, AP Protection of Depositors and Chit Funds Act.
Undavalli termed the Supreme Court’s order in the case a very important development. “Pointing out that MCFPL has been described as an HUF at one place and proprietary in another, SC has sought a clarification on the same,” he observed. “From the very beginning, my argument has been that collecting the amount itself was wrong. Finally a major push has been given to the case and let us hope, it is brought to a logical conclusion,” he said.
