AP CID writes to neighbouring states to probe Margadarsi

The Andhra Pradesh CID has written to various law enforcement agencies in neighbouring states to probe into the alleged irregularities by Margadarsi chit funds pvt ltd in their respective jurisdictions, said an official on Wednesday.

The CID wrote to the DGPs, ADGPs, CB CID and commissioners of stamps and registrations in Telangana, Karnataka and Tamil Nadu.

It also alerted the Central Board of Direct Taxes (CBDT), Directorate of Enforcement and the Serious Fraud Investigation Office (SFIO).

''In the interest of Chit Fund subscribers in Andhra Pradesh and other states, the preliminary findings of the investigation were intimated...They were requested to examine the aspects falling under the respective jurisdictions, for necessary action, '' said N. Sanjay, ADGP, CID in a statement.

He noted that the financial irregularities identified have to be dealt with not just by the police but also other specialized wings.

Meanwhile, a top official of Margadarsi told PTI: ''not even a single complaint was filed against the company in 60 years.'' He also alleged that Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 was willfully invoked to book the cases, ''knowing it fully well that the act is not applicable to establishments registered under the Companies Act.'' Among other alleged irregularities, the CID has registered multiple cases against Margadarsi for allegedly deviating from its core activity of chit fund business without the special imprimatur of the state government.

It claimed that Margadarsi invested crores of rupees in government securities, equity instruments and mutual funds, including subsidiaries and associates.