HYDERABAD: The Andhra government on Friday told the Telangana High Court that further investigation into Margadarsi Chit Fund was unnecessary, citing the demise of its “Kartha” (head) under the Hindu Undivided Family (HUF) framework. The Telangana government echoed a similar stance, presenting its argument within five minutes.
The court conducted a hearing on the ongoing investigation into alleged violations of financial rules by Margadarsi Chit Fund floated by the late media baron Ramoji Rao.
A bench of Justice P Sam Koshy and Justice Narsing Rao Nandikonda reviewed arguments from multiple stakeholders, including the governments of AP and Telangana, Margadarsi representatives and the RBI.
Counsel representing the RBI contended that Margadarsi had violated Section 45(S) of the Reserve Bank of India Act. The RBI maintained that the investigation must proceed regardless of Ramoji Rao’s passing, as the alleged legal violations remain pertinent.
Margadarsi, in its response, asserted that while Ramoji Rao’s heirs were not responsible for any alleged criminal liabilities, they remained willing to cooperate with investigations related to civil liabilities.
Senior leader and former MP Undavalli Arun Kumar, who has been vocal about the case, reaffirmed his stance that Margadarsi must be prosecuted. The High Court has adjourned the case, scheduling Arun Kumar’s arguments for March 7, 2025.