Margadarsi Irregularities: No One Is Above Law, Says Ambati Rambabu

AMARAVATI: Brushing aside the allegations of victimisation against Margadarsi Chit Fund Company, Minister for Irrigation Ambati Rambabu said that no one can escape the law for financial irregularities.
Addressing the media here on Friday, he said that as per the law of the land, the Stamps and Registration Department Officials are conducting raids against various chit-fund companies across the state. Action has been taken against the companies violating the law. Margadarsi has also violated the law and resorted to several irregularities which are brought to light by the officials, he said. 

Highlighting the irregularities of Margadarsi, the minister said that the chit fund company is delaying in paying the prize money amount to the chit subscribers citing a lack of sureties. The auctioned prize money is being illegally reinvested into the other group companies owned by Ramoji Rao for the past five or six decades. Instead of maintaining individual accounts separately for each subscriber, Margadarsi has thrown away all the norms to the winds and maintained a single account for all. 

All these malpractices came to light during the recent raids of the Stamps and Registration Department officials, he said. Rambabu also claimed that the chit fund company has withheld the auctioned prize money on several occasions subjecting the subscribers to serious mental agony and harassment. He appealed to all new Margadarsi subscribers to be cautious of their financial dealings with the company. It is also learnt through the recent raids that all Ramoji Group companies revealed violations of various financial laws. 

All individuals and companies must abide by the law in running business enterprises and Ramoji Rao is not above the law, he said. It's not correct on part of Ramoji Rao to claim that the government is resorting to victimisation. The company is still collecting deposits even after filing an affidavit in the court claiming that they are not accepting deposits, he said.

Reacting to the penalties imposed by the High Court on Ippatam villagers for misleading the judiciary, he said that TDP and Jana Sena have raised an unnecessary hue and cry against the government to hoodwink the people and spread falsehood. They are not hesitating even to cheat the courts of law. He also objected to the provocations of Jana Sena Chief Pawan Kalyan to topple the government for its no fault in the matter.
Condemning the remarks made by the TDP leaders with reference to the mobile phone lost by Rajya Sabha MP Vijaysai Reddy, he said that it only reveals their despair and frustration.

Also Read: Raids On Chit Fund Companies Including Margadarsi Across AP