VIJAYAWADA: Responding to charges levelled by the Margadarsi Chit Fund Pvt Ltd (MCFPL) against him, APCID chief N Sanjay made it clear that they are investigating the crime based on reports submitted by the Stamps and Registration Department, the competent authority in regulating the activity of chit fund companies.
Being a chit fund firm, MCFPL has to share its records transparently with the probe agency for a free and fair investigation, he said. Alleging that the APCID chief made dramatic allegations, MCFPL described his press statement as ‘astonishing fabrications’.
On Thursday, Sanjay explained, “APCID is discharging its duties in accordance with law and without any bias. Its endeavour is to unearth facts of the financial fraud committed by MCFPL. It is the responsibility of Margadarsi to cooperate with the investigation agency as required under law.”The APCID chief had written to the Enforcement Directorate, Income Tax and Serious Fraud Investigation Office (SFIO) to probe into the alleged MCFPL scam.
In the letter, he said the CID sleuths have found that the chit fund firm was involved in illegal activities such as money laundering, syphoning of funds, corporate fraud, helping ghost subscribers to indulge in benami transactions and evasion of income tax. “As these violations pertain to the domain of central enforcement agencies, we met them and requested them to take timely action according to the law,” he added.
Meanwhile, CID sleuths continued their inspection at Margadarsi headquarters in Hyderabad’s Jubilee Hills on Thursday. They reportedly collected balance sheets and questioned four more employees regarding the differences in the balance sheets in deposits from the customers.
Based on the statements recorded by the company’s managing director Cherukuri Sailaja, named as second accused in the case, sleuths verified the cheques and bank statements for identifying the flow of funds (depositors money).