Jagajjanani Chit Funds Directors, TDP Leaders Adireddy Appa Rao & Adireddy Vasu Arrested By AP CID

RAJAMAHENDRAVARAM: In continuation of the investigation into the financial irregularities in chit fund companies, the Andhra Pradesh Crime Investigation Department (AP CID) officials arrested former Telugu Desam Party (TDP) MLC Adireddy Appa Rao and his son TDP State Executive Secretary Adireddy Srinivasa Rao in Rajamahendravaram on Sunday. Adireddy Srinivasa Rao is the husband of TDP Rajahmundry MLA Adireddy Bhavani.

As per reports, the arrests were made in connection with the AP CID investigation into alleged fraud in the Jagajjanani Chit Funds Private Limited transactions where the two of them are said to be directors. They were taken to the CID Regional Office for questioning.

According to the details, the CID during the investigation found irregularities in the transactions of Jagajjanani Chit fund company at their head office in Rajamahendravaram. A complaint was filed with the Kakinada Assistant Registrar and it was found that they had committed fraud by creating fake accounts, misappropriation of the client's money, submitting false declarations, and also committing irregularities in the payment of chits. Details of 49 subscribers were checked and verified and the company also violated the Chit Fund Act, 1982, rules and committed irregularities in the transactions. The evidence was given to the CID and on this basis, the arrests were made.

Since last November, the CID  has carried out inspections in chit fund companies in the state. On March 16, inspections were carried out in many chit-fund organizations in the state, including Jagajjanani Chits. 

Meanwhile, the CID  teams conducted extensive searches at 37 branches of Margadarsi Chit Funds Pvt Ltd (MCFPL) across the State on Saturday, for alleged financial irregularities."In continuation of investigation in cases registered against Margadarsi…on April 29, the CID is conducting searches at the following 37 branches of MCFPL," Sanjay said in a statement. The AP CID had earlier raided multiple offices of the company last month on alleged irregularities, including the diversion of depositors' money into mutual funds and speculative markets for personal gain. 

Also Read: Andhra Pradesh: Multiple CID Teams Search Margadarsi Branches Over Financial Irregularities