Margadarsi Chit Fund Case: AP CID Attaches Properties Worth Rs 793 crores of Ramoji Rao 

Amaravati: Andhra Pradesh Crime Investigation Department (CID), which is investigating the Margadarsi Chit fund scam, on Monday attached the assets of company’s chairman Cherukuri  Ramoji Rao, who was named as an accused number 1 (A1) in the case. The CID team attached movable and immovable properties worth approximately Rs 793 crores belonging to Ramoji Rao.

During its investigation into the Margadarsi Chit fund scam, the CID officials have found irregularities, including diversion of depositors money into mutual funds and speculative markets for personal gains. The investigating agency has said the decision to attach the properties was taken in the interest of the depositors. 

“The collection of the amount by the chit fund company with a promise to give interest and later diverting funds to the risk of the stock market is a violation of Income Tax Act. Margadarsi Chit fund is operating its business across Andhra Pradesh with 37 branches in various districts. The chit fund company is not in a position to return the money to its subscribers,” the state CID said in a statement on Monday. 

The AP CID has already registered cases against Ch Ramoji Rao, Ch Sailaja, and Margadarshi Chit Funds managers and also their auditor for violating the provisions of the Chit Fund Act. The  AP CID has already arrested four branch managers and the auditor in this case.

On March 11th the CID registered a case against both of them for allegedly collecting money from the people for chit-fund schemes in violation of  RBI guidelines. The Margadarsi company was facing allegations of diverting subscribers' money into other companies and mutual funds. 

“మార్గదర్శి కేసులో రామోజీ ఆస్తులను అటాచ్ చేసిన సీఐడీ”

రూ.793 కోట్ల విలువైన ఆస్తులను అటాచ్ చేసిన సీఐడీ. మార్గదర్శి ఛైర్మన్, మేనేజింగ్ డైరెక్టర్, ఫోర్ మెన్, ఆడిటర్ కుట్రతో నేరానికి పాల్పడినట్టు తెలిపిన సీఐడీ. మార్గదర్శి చిట్స్ ద్వారా సేకరించిన డబ్బును హైదరాబాద్ కార్పొరేట్ ఆఫీసు… pic.twitter.com/3u8Y6uq62j

— YSR Congress Party (@YSRCParty) May 29, 2023

The case against Ramoji Rao was filed under Sections 120B, 409, 420, 477(A) read along with Section 34 of IPC. The case was registered under Section 5 of the AP Protection of Depositors of Financial Establishments Act, 1999. The CID has named Cherukuri Ramoji Rao as accused number 1 (A1) and Cherukuri Sailaja as accused number 2 (A2) while the respective bank manager is A3. 

Also Read: YSRCP Minister Jogi Ramesh Trashes TDP’s Poll Manifesto Released at Mahanadu