Setback For Margadarsi In Telangana High Court Over AP CID Raids

HYDERABAD: Margadarsi Chit Fund company faced a setback in the Telangana High Court on Wednesday when the Bench refused to issue orders to stop the CID from conducting raids on the chit fund company. Margadarsi challenged the ongoing raids at their offices in Hyderabad in the High Court. The High Court stated that they cannot issue any order to obstruct the CID searches.

The counsel for Margadarsi mentioned before the bench to issue orders to the CID  to stop the searches, to which the Counsel for the State of Andhra Pradesh Govinda Reddy, refuted the petition stating that the mention was made before the bench without any petition filed which was against the rules. He also brought to the court’s notice that people like this would send wrong signals to the people.

Also Watch: TS High Court Hearing Margadarsi Chit Fund | Margadarsi Case

The AP CID conducted searches at Margadarsi's head office in the city on Wednesday morning. A team of officials came to examine the balance sheets and other documents in the offices as part of the ongoing investigation into the irregularities related to the funds' diversion in the company.

The AP government has asked central investigative agencies to probe the Margadarsi Chit Fund scam over money laundering. The AP CID which started a probe last August has alleged that the company violated several rules of the RBI and chit fund act by risking the money of investors from the state. When ked for more details in the books of account, the company said that the data can be collected from the corporate office in Hyderabad. 

Also Read: Margadarsi Chit Fund Scam: Chit Fund Rules Were Violated