Andhra CID says probe found ghost subscribers in Margadarsi chit fund

The Andhra Pradesh Crime Investigation Department (CID) on Sunday, August 20 filed three fresh First Information Reports against Margadarsi Chit Fund Private Limited (MCFPL), promoted by media baron Ramoji Rao, accusing them of misappropriation of funds, cheating and forgery.  The CID alleged that the chit fund company was running chit memberships without the knowledge of some people, resorting to impersonation (ghost subscribers) to misappropriate funds. They also accused Margadarsi of not paying chit to its members and causing “undue harassment for sureties.” The cases were registered under three police stations–Anakapalli, Chirala I Town, and Rajahmundry II Town.

The CID said that they inspected 37 branches of Margadarsi in the state, to ascertain complaints of its subscribers, alleging non-payment by the company.

N Sanjay, Additional Director General of Police (ADGP) of AP CID,  at a press conference held on Sunday said, “A number of irregularities involving fraudulent membership have been discovered.  The company's financial situation is very uncertain, and in order to pay its subscribers, it is dependent on their recent and new subscriptions.” 

He also alleged that the black money holders invested in Margadarsi, which the management was aware of, they said. “This needs further probing by the departments of enforcement directorate, income tax etc.” Sanjay said. 

The AP CID booked fresh cases under Indian Penal Code - 409 (misappropriation of property),  420 (Cheating), 120 (b) (Criminal conspiracy), 468 (forgery), 471(Using genuine forged document), 477-A (Falsification of accounts) and section 5 (Penalty for default ) of Andhra Pradesh Protection of Depositors of Financial Establishments Act (APPDFEA act)

According to the officials, there are around 50,000 subscribers who are yet to be made payments by the Margadarsi. 

Further, the CID also set up a dedicated helpline number – 9493174065, asking the Margadarsi victims to register their complaints. 

The CID had earlier attached properties worth over Rs 1000 crore on direction from the government.  

In total, so far 10 FIRs have been booked against Ramoji Rao,  the director; Sailaja Kiran, daughter-in-law and  the managing director; and others associated with the chit fund company.