Watch: Vundalli Arun Kumar's First Reaction on Margadarsi - RBI Issue

Former MP and prominent lawyer Vundavalli Arun Kumar has expressed disappointment over the lack of response from the Chief Ministers of Telugu states regarding the Margadarshi case. He has urged that at least in light of the latest High Court orders, there should be some reaction. Arun Kumar commented that the involvement of YS Jagan in the past had lent strength to the case, and expressed interest in seeing what Chandrababu Naidu will do now. He made these remarks while speaking to the media in Rajahmundry on Wednesday.

"The Telangana High Court has begun proceedings following Supreme Court directives. Siddharth Lodra, representing Margadarsi Financiers, has requested a two-week extension for arguments. Margadarsi has submitted details to the Supreme Court in a 70,000-page document, outlining to whom payments were made. Many Margadarsi Finance account holders have asked me why interest was not paid. The Supreme Court has ordered the High Court to appoint a judiciary advisor to examine whether everyone has received their money with interest."

"Margadarsi’s collection of deposits is illegal. In 2006, I informed then Finance Minister Chidambaram about this, and now the RBI has also confirmed it. The RBI affidavit corroborates my statements. My struggle against Margadarshi has been misrepresented. People think I am doing this just because YS Rajasekhar Reddy mentioned it, but that is not true. No chit fund company in Andhra or Telangana follows the Chit Fund Act. Recently, the Jayalaxmi Chit Fund Company in Kakinada was shut down. Margadarsi has denounced the Chit Fund Act as bad. Hence, other chit fund companies too claim they are following the practices of Ramojirao and Margadarsi in not following the Chit Fund Act."

"Margadarsi filed a defamation case against me, alleging 50 lakhs in damages, which is still pending in the Telangana court. If Margadarsi’s chit fund issues are resolved, I could be cleared of this case. The money from Margadarsi Chits went into Margadarshi Finance and then into Ramojirao’s pocket. Ramojirao used the Eenadu paper to cover his activities. There will definitely be an impact. The responsibility to clarify the facts lies with the Chief Ministers of both states," said Vundavalli Arun Kumar. What Chandrababu Naidu will do regarding the Margadarsi case remains a point of interest.

"The case has been postponed to September 11. Despite two weeks passing since the Margadarshi case proceedings began, neither the Revanth Reddy nor Chandrababu Naidu governments have responded. Previously, YS Jaganmohan Reddy’s involvement had given strength to the case. Now, with Chandrababu Naidu as Chief Minister, who has close ties with Ramojirao, it remains to be seen how he will respond. Respect for the government will be maintained only if they react. There will be delays in court, but there will be no injustice. Despite his close ties with Ramojirao, Chandrababu Naidu must cooperate with the investigation in his capacity as Chief Minister. Both governments should immediately file affidavits in the High Court," said Vundavalli.

On the Andhra Pradesh election results:

"The organization 'Vote for Democracy' has announced a 12.5% discrepancy in the vote counts in Andhra Pradesh. Why Chandrababu Naidu has not responded to this is unclear. According to the People’s Representation Act, vote details should be securely stored for 45 days after polling results are announced. If the details provided by 'Vote for Democracy' are correct, Chandrababu should declare them. The Election Commissioner Meena’s announcement to destroy vote details within ten days must be clarified," Vundavalli demanded.

"The Andhra Pradesh Reorganization Act is now before the Supreme Court. Telangana is demanding the return of the five districts allocated to Andhra Pradesh. I urge Chandrababu Naidu to file an affidavit similar to how YS Jagan did for the Andhra Pradesh government. It is unclear why Telangana was included among the 11 states declared as Special Category States," concluded Vundavalli.