Margadarsi diverted funds into speculative markets, alleges AP CID

Margadarsi Chit Funds Pvt Ltd (MCFPL) has deviated from its core activity of chit fund business without the special imprimatur of the state government to invest crore of rupees in government securities, equity instruments and mutual funds, including subsidiaries and associates, an AP Police CID official has alleged.

Following a forensic analysis of the books of accounts of the popular chit fund company from the Telugu states, the CID alleged chit-wise balance sheet and profit and loss statements were not being maintained and submitted to authorities.

There was no immediate word from the company.