The Government of Andhra Pradesh has issued another order allowing the Crime Investigation Department (CID) to attach the movable assets belonging to Margadarsi Chit Funds Pvt. Ltd. (MCFPL), which reportedly made investments in the share capital of Usha Kiron Media Pvt. Ltd. and Ushodaya Enterprises Pvt. Ltd.
Addressing a joint press conference at the Publicity Cell in Secretariat, Velagapudi, Ch. Srikanth, Inspector General of Police, CID, and Amith Bardar, Superintendent of Police, CID, said assets worth ₹15.81 crore were to be attached as per the order.
Mr. Bardar said that Harish Kumar Gupta, Secretary to Home Department, issued G.O. No 134 on July 27 allowing the CID to attach the assets. Earlier, two G.O.s were issued by the Home Department for attachment of MCFPL properties. The total value of the assets as per the three attachment orders was ₹1,035 crore.
Two chargesheets filed
The CID was investigating seven cases filed against individuals and entities related to MCFPL, including against its chairman Cherukuri Ramoji Rao, Ch. Sailaja Kiron, and branch managers. Chargesheets were filed against 15 individuals and MCFPL in two of the cases under IPC sections 120 B (criminal conspiracy), 420 (cheating), 403 (misappropriation of funds), and 409 (criminal breach of trust). Cases were also filed for falsification of accounts, and violation of other provisions of the AP Protection of Depositors of Financial Establishments Act and the Chit Fund Act, the SP said.
The AP Stamps and Registration Department had issued a number of winding up orders relating to certain chit groups of MCFPL, which were challenged by a few subscribers in courts.
There were allegations that some of these petitions were filed by obtaining the signatures of the subscribers through fraudulent means and misrepresentation by the agents or interested members of MCFPL, the SP said, adding legal action would be taken in this regard. The subscribers should be cautious while signing documents, he said.
Mr. Ramoji Rao and others were not cooperating with the investigation officer and did not appear before the officer as summoned. The CID would take further steps in this regard after consulting advocates, he added.
