VIJAYAWADA: Krishna Lanka police registered a case against the management of the Labbipet branch of Margadarsi Chit Fund Private Limited (MCFPL) based on a complaint lodged by Musthi Srinivas (64), a subscriber, on Thursday and took the branch manager (foreman) B Srinivas into custody.
An FIR has been registered under Sections 409, 420, 120(b) of IPC and relevant sections of the Andhra Pradesh Protection of Depositors and Financial Establishment Act, 1999.
In his complaint, Srinivas alleged that the MCFPL branch management cheated him by taking his property documents as surety for the chit and failed to repay the chit bid amount of Rs 37.5 lakh. He also stated that he subscribed to Rs 50 lakh chit in the Labbipet branch of MCFPL in September 2021 and paid 18 instalments till February this year.
Due to financial problems, he expressed his interest to participate in the bid and informed the same to the branch manager, who promised him to accept his bid and hand over the bid amount at the earliest.
The complainant further alleged that the MCFPL branch committed irregularities by operating the chit with 30 members instead of 50. “An inquiry will be conducted into the charges made by the complainant against the MCFPL Labbipet branch to reveal the facts,” said Commissioner of Police Kanthi Rana Tata.