VIJAYAWADA: APCID filed an appeal in the Andhra Pradesh High Court challenging the orders issued by the special courts for the Protection of Depositors of Financial Establishments Act in Visakhapatnam and Guntur to ‘return’ the chargesheets filed in the cases registered against Margadarsi Chit Fund Private Limited (MCFL) Chairman Ch Ramoji Rao, Managing Director Sailaja Kiran, auditor K Sravan and others.
Cases against a total of 15 people were registered by CID on charges of violating several provisions of the Chit Funds Act. When the chargesheets in the cases were filed in the special courts on August 28, both courts issued orders to return the chargesheets. In its appeal in the High Court, CID sought cancellation of the orders issued by the special courts. It was observed that ‘return’ orders by both the special courts were issued on the same day and similar in nature.
In their orders, the special courts stated that to hear the case, basic evidence that the prize money of the chit that has to be paid to the subscribers was not paid, has to be produced. However, none of the subscribers of Chits had filed any complaint in this regard.
In its appeal, CID contended that though there was enough evidence, the special courts had overlooked it and gave a new definition for Section 5 of the Protection of Depositors of Financial Establishments Act, which should not be done. There is no difference between temporary non-payment of prize money and permanent non-payment. Examining the chargesheets filed in detail, it would be clear that violations by MCFL and testimonies of subscribers that prize money was not paid.CID urged the High Court to take all these issues into consideration cancel the orders of the special courts and direct them to hear the case. CID’s petition may come up for hearing next week.