VIJAYAWADA: During the arguments in the case against Margadarsi Chit Fund Private Limited (MCFPL) in the AP High Court, the State government maintained that there was no scope for subscribers to know the internal irregularities in the company. Advocate General S Sriram questioned how can one say that as there are no complaints from subscribers, irregularities in MCFPL cannot be questioned. He asserted that the closure of MCFPL chit groups is not a unilateral decision.
He pointed out that after identifying irregularities in MCPFL, notices were served on it in December 2022 seeking an explanation. In spite of notices, MCFPL continued its violations. Chit registrars are empowered to take suo motu action in case of violations and there is no need to wait for receiving a complaint for taking action, the AG said. Stating that as extensive public interest is involved, he urged the court not to issue any interim stay orders. He informed the court that a counter with full details will be filed soon.
With regard to the Prakasam district chit groups case, the AG said the order for closure was given before the public notice was issued. Admitting that it was their mistake, the AG said they are ready to withdraw the order. The court adjourned the case hearing of Prakasam chit groups to Thursday and reserved the orders on other chit groups.