VIJAYAWADA: The Andhra Pradesh High Court on Monday made it clear that Margadarsi Chit Fund Private Limited should respond to the notices served by the designated registrars pointing out certain lapses in the functioning of the firm. The court directed the firm to respond to the notices within four weeks.
The court said the officials should act in a fair manner in accordance with Section 46(3) of the Chit Fund Act after Margadarsi chit fund company’s response to the notices.
Instructing the officials not to resort to coercive acts against the chit fund company, the court wanted them to act as per the rules in matters related to giving permission, registration, release of security deposits and other aspects.
The court heard the supplementary petitions filed by Margadarsi seeking court intervention to instruct the officials from imposing penalties against it.
Justice S Subbareddy, after hearing both the sides, said there was no complaint against the chit fund company and no notices were served by the officials asking it to rectify any lapses in running the company.
The court also observed that Margadarsi chit fund firm is not a defaulter, but said it has to respond to the notices served by the officials asking the firm to rectify the lapses that they found during their inspection.
Later, the matter was posted to January 19, 2023.