VIJAYAWADA: The Andhra Pradesh CID has issued notices on Margadarsi Chit Fund Private Limited (MCFPL) Chairman Cherukuri Ramoji Rao and the firm's Managing Director Ch Sailaja for questioning in the alleged Margadarsi chit fund scam.
The two were served notices under Section 160 CrPC and were asked to be available for examination at their residence or office on March 30, 31 or on April 3 or 6 and cooperate with the investigation.
The AP CID had earlier registered an FIR against the chairman of MCFPL Cherukuri Ramoji Rao, his daughter-in-law and MD of MCFPL Cherukuri Sailaja and the branch managers of various branches of the chit fund company for alleged cheating, diversion of deposits into mutual funds, which are contingent on capital markets’ risks and violation of Chit Fund Act and Reserve Bank of India (RBI) guidelines.
The CID had registered the case following multiple complaints from assistant registrars of various districts in connection with the Stamp and Registration department raids on the offices of Margadarsi Chit Fund Pvt Ltd during October and November months last year.
The CID registered a case under Sections 120(B), 409, 420, 477(A) read with 34 of IPC, section 5 of Andhra Pradesh Protection of Depositors and section 76, 79 of Chit Funds Act (1982), in which Ramoji Rao has been named as accused number one, Sailaja as the second accused followed by heads of concerned branches.