SC Rejects Stay In Margadarsi Chit Fund Case

The Margadarsi Chit fund deposit collection case came up for hearing in the Supreme Court today. It may be recollected that former MP Undavalli Arun Kumar had written a letter to the then President, Pranab Mukherjee alleging that Ramoji Rao, the founder of the Margadarsi Group had illegally collected money to a tune of Rs 2600 crore from the depositors. The government had also issued a GO for an inquiry against Margadarsi. The management challenged the appointment of the One-Man Commission appointed to probe the money collection Case and filed a stay petition in the Supreme Court.

But in a recent judgement the Supreme Court ruled that a stay on proceedings must not exceed six months and has directed that in all pending cases where stay against proceedings of a civil or criminal trial are in operation, they will come to an end on expiry of six months unless in an exceptional case wherein by an oral order, such stay is extended.

The stipulated 6 months has elapsed and Margadarsi filed for an extension of the stay which was rejected by the Supreme Court.Notices were also issued to the Telangana State Government and Undavalli Arun Kumar seeking their opinion in the matter for further adjudication.

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