Tag: Chit

Andhra Pradesh HC grants bail to TDP leaders in chit fund case

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Amaravati: The Andhra Pradesh High Court on Wednesday granted bail to former Telugu Desam Party (TDP) MLC Adireddy Appa Rao and his son and TDP state executive secretary Adireddy Srinivasa Rao in a case relating to financial irregularities in a chit fund company.
They were arrested by the Crime Investigation Department (CID) of Andhra Pradesh on April 30. They had filed a petition for bail and the High Court had completed hearing on the same two days ago.
Appa Rao, the husband of TDP Rajahmundry MLA Adireddy Bhavani, and their son Srinivasa Rao, are directors in Jagajjanani Chit Funds Private Limited.

During the hearing on the bail petition, the counsel of the TDP leaders argued that the Depositors Act does not apply in the case. They also argued that a case was registered against them without any complaint lodged by depositors.
On behalf of the state government, Advocate General Sriram submitted to the court that the accused diverted money of the depositors for other purposes.
The main opposition TDP had condemned the arrests. TDP national president and former chief minister N. Chandrababu Naidu spoke to Bhavani over phone and expressed solidarity with her.
Naidu said that the political harassment and vendetta by the YSR Congress Party (YSRCP) government is increasing by the day. He lamented that there is no change in the ruling party’s behaviour.
The TDP president had said the YSRCP government believed only in illegal cases and illegal arrests. He said the arrest of Appa Rao and Srinivasa Rao is another example of the YSRCP government’s politics of vendetta.

The TDP chief said despite courts reprimanding the government on many occasions, the Jagan government has not mended its ways.
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#Andhra #Pradesh #grants #bail #TDP #leaders #chit #fund #case
( With inputs from www.siasat.com )

May 10, 2023
Andhra CID arrests TDP leaders in chit fund company case

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Amaravati: The Andhra Pradesh Police’s CID on Sunday arrested former Telugu Desam Party (TDP) MLC Adireddy Appa Rao and his son and TDP state Executive Secretary Adireddy Srinivasa Rao in a case relating to financial irregularities in a chit fund company.
The CID sleuths arrested the father-son duo from their residence in Rajamahendravaram and shifted them to the CID office. Appa Rao, who is the husband of TDP Rajahmundry MLA Adireddy Bhavani and their son Srinivasa Rao are said to be directors in Jagajjanani Chit Funds Private Ltd.
The main opposition party condemned the arrests. Several party leaders and workers reached the party office in Rajamahendravaram and voiced their protest over the arrests.

Meanwhile, TDP national President and former Chief Minister N. Chandrababu Naidu spoke to Bhavani over phone and expressed solidarity with her.
Naidu said that the political harassment and vendetta by the YSR Congress Party (YSRCP) government is increasing by the day. He lamented that there is no change in the ruling party’s behavior.
The TDP President said the YSRCP government believed only in illegal cases and illegal arrests. He said the arrest of Appa Rao and Srinivasa Rao is another example of the YSRCP government’s politics of vendetta.
Naidu alleged that Chief Minister Y.S. Jagan Mohan Reddy does not want anybody to do business in the state. “Is CID a government investigation agency or YSRCP threatening agency,” he asked
The TDP chief said despite courts reprimanding the government on many occasions, the Jagan government has not mend its ways.

TDP’s Andhra Pradesh unit chief Atchanaidu said the party was not afraid of illegal cases and arrests. He alleged that there is no difference between YSRCP ‘goondas’ and CID officials. The former minister said while on one hand, YSRCP leaders were resorting to physical attacks on TDP workers, the CID, on the other, is raiding the houses of TDP leaders in the name of searches.
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#Andhra #CID #arrests #TDP #leaders #chit #fund #company #case
( With inputs from www.siasat.com )

April 30, 2023
AP: CID conducts searches at 7 branches of Margadarsi Chit Funds

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Andhra Pradesh: The Crime Investigation Department (CID) of Andhra Pradesh on Wednesday conducted search operations at seven branches of the Margadarsi Chit Funds Private Limited (MCFPL) across the State.
“These search operations were undertaken as part of an investigation into the cases registered by AP-CID against seven branches of MCFPL under sections 420, 409, 120(B), 477(A) read with 34 IPC and Sec 5 of APPDFE Act-1999 and Sec 76, 79 of Chit Funds Act 1982,” an official release stated.
During the searches, the book of accounts and documents including electronic documents pertaining to the case were scrutinized, the release stated.

Further investigation is underway, it stated.
Earlier on March 28, the Andhra Pradesh’s CID served notices to Cherukuri Ramoji Rao, the Chairman of Margadarsi Chit Fund Private Limited and his daughter-in-law and Managing Director Sailaja Cherukuri in connection with the Chit fund scam.
As per the notice, the said persons have been asked to be present at their residence/office on March 29 or March 31 or April 3 or April 6 and cooperate with the investigation.
Last November, Andhra Pradesh’s Registration and Stamps Department said that there have been malpractices in the functioning of chit fund companies in the state and show cause notice would be issued to those who have violated the rules.
V Ramakrishna, Inspector General (Registration and Stamps Department) had said forensic auditing will be carried out in Margadarshi chit fund companies at a press conference.

The official had said that the Stamps and Registrations Regulatory Authority will be the nodal agency for chit-fund institutions and carry out regular inspections.
He had said the department conducted inspections at 12 chit fund companies on October 21, five organisations were inspected on October 31 and 18 units were inspected on November 15. He had said a total of 35 units have been inspected.
Ramakrishna had said that irregularities included using money borrowed through chit fund for “other purposes”
“Showcause notices will be issued to companies that have violated the rules, including the guidelines of the company. We will take further action after getting the reply to the show cause notices,” he had said.
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#CID #conducts #searches #branches #Margadarsi #Chit #Funds
( With inputs from www.siasat.com )

April 20, 2023
Lucknow court rejects plea of Atiq Ahmed, son seeking clean chit in 2018 case

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Lucknow: A CBI court here has rejected a plea moved by gangster-turned-politician Atiq Ahmed and his son Umar, seeking a clean chit in an extortion case.
The court of Special CBI Judge Ajay Vikram Singh has summoned Ahmed, Umar and the other accused on April 7 for framing charges.
The applicants were booked in connection with the 2018 abduction of Lucknow-based businessman Mohit Jaiswal, who was then taken to the Deoria district jail.
Jaiswal was allegedly thrashed in the jail in the presence of Ahmed and subsequently, forced to resign from his four companies in which the former Samajwadi Party (SP) MP inducted his own men, Zaki Ahmed and Mohammad Farukh.
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( With inputs from www.siasat.com )

March 28, 2023
AP CID raids Margadarsi Chit Fund branches over financial irregularities

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Amaravati: The Andhra Pradesh Police CID has registered multiple FIRs against Margadarsi Chit Fund Pvt Ltd for a string of alleged irregularities, including diversion of depositors money into mutual funds and speculative markets for personal gain, an official said on Saturday.
Naming the chit fund’s chairman and media baron Cherukuri Ramoji Rao, company director Sailaja Cherukuri and the firm’s branch managers from various locations as accused, the CID termed the irregularities grave in nature.
Multiple CID teams swooped on Margadarsi branches in Visakhapatnam, Rajamundry, Eluru, Vijayawada, Guntur, Narasaraopeta and Anantapur, where searches are continuing.
“In view of the findings which are grave in nature, including the diverting of the subscribers money to mutual funds/speculative markets for their personal gains… the CID had immediately registered the cases and in pursuance of the FIRs, they commenced the investigation of the case,” an official said.
Non-payment of monthly subscriptions, illegal diversion of funds to the corporate office, non-disclosure of revenue and expenditure account and several other irregularities were named by the CID.
FIRs were registered on Friday under various sections of the Indian Penal Code, Section 5 of Andhra Pradesh Protection of Depositors in Financial Establishments Act and Sections 76 and 79 of the Chit Funds Act.
As the regulating power of chit fund businesses, the Stamps and Registration Department started its search of Margadarsi branches in October and November, 2022 along with other such firms.
The CID had also raided the chit fund company’s corporate office in Hyderabad for three days last December, where it unearthed collections from branch offices being funnelled into the corporate office for onward investment into mutual funds which are contingent to risks in the capital markets.

Rao is an influential media baron with interests in multiple businesses, including owning the famous Ramoji Film City in the outskirts of Hyderabad metropolis.
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#CID #raids #Margadarsi #Chit #Fund #branches #financial #irregularities
( With inputs from www.siasat.com )

March 12, 2023