VIJAYAWADA: The Andhra Pradesh High Court on Friday issued a stay on further proceedings in the public notice issued by the Registrar of Chits calling objections with respect to the closure of chits of Margadarsi Chit Fund Private Limited (MCFPL).
The High Court observed that it had already issued a stay on the closure orders of some of the chits while dealing with the petitions filed by some of Margadarsi subscribers. It felt that the recent public notice would affect the interests of subscribers as well as MCFPL.
The court said the pleas filed by subscribers challenging the closure of chit groups would be merged with the one filed by the MCFPL management and directed the State government and the Registrar of Chits to file their counters.
The MCFPL management had already challenged the public notice in the High Court and Justice N Jayasurya had reserved interim orders on the petition. With some subscribers filing similar petitions, the bench issued the interim stay orders on Friday and posted the matter for hearing after four weeks.