VIJAYAWADA: Sleuths of the Andhra Pradesh Crime Investigation Department (APCID) on Sunday arrested former MLC Adireddy Apparao and son Adireddy Srinivas for alleged irregularities in the operations of Jagajjanani Chit Fund Pvt Ltd (JCFPL). They were shifted to the regional CID office for questioning and later sent to judicial remand.
Apparao, the firm’s designated foreman, is accused number 1, while Srinivas, the company’s director is accused number 2 in the case. It may be noted that Srinivas is the husband of Rajahmundry Urban MLA Adireddy Bhavani, who represents the TDP. The development comes close on the heels of the CID investigating the alleged irregularities in Margadarsi Chit Fund Private Limited (MCFPL).
The Stamps and Registration Department found violations in the operations of JCFPL while inspecting chit-fund companies across the State. Following this, assistant registrar (Kakinada) K Vara Prasad filed a complaint with the CID.
Additional DG (APCID) N Sanjay explained that they had come across instances of certain financial companies engaging in chit business, collecting money from the public and further diverting the same to their own businesses in violation of laws under The Chit Fund Act, 1982. “This illegal practice puts the repayment of chit maturity amounts to subscribers into serious jeopardy,” Sanjay observed.
The officials added that the probe agency has registered an FIR against JCFPL under various sections of the IPC, AP Protection of Depositors in Financial Establishments Act and The Chit Fund Act.
“As per the documents obtained, we identified irregularities in non-payment of subscription amount into the chit account, which the company is supposed to pay on par with the subscribers in each chit, false declaration of facts in the minutes of auction proceedings submitted to the Assistant Registrar of Chits, circulation of subscription amount and indulging in illegal moneylending business and collection of deposits with payment of interest against the RBI guidelines,” the probe agency pointed out.
Further, the CID emphasised the need to thoroughly probe the books of JCFPL to put a stop on the blatant exploitation of common people by the company. On receiving information on the arrest, former minister Nimmakayala Chinarajappa, former MLA Nallamilli Ramakrishna Reddy, and other TDP leaders came down heavily on the YSRC government and accused it of targeting TDP leaders and their businesses.
Condemning the arrest of Apparao and Srinivas, TDP supremo N Chandrababu Naidu charged that the YSRC government of targeting Opposition party leaders with false cases and arrests. He asked if the CID was an investigation agency or working for the YSRC to trouble those raising their voices against the shortcomings of the Jagan government. Naidu also spoke to Bhavani over the phone and assured her that the party will stand by her family.
Meanwhile, the TDP leaders alleged that the Adireddy family was being targeted only to divert the attention of people from developments in the YS Vivekananda murder case.