VIJAYAWADA: The AP Crime Investigation Department (CID), which is probing the alleged scam in Margadarsi Chit Fund Private Limited, on Wednesday shot off a letter to the Police, Stamps and Registration departments of three neighbouring States and central agencies dealing with economic offences and irregularities to examine various aspects of violations in MCFPL under their respective jurisdictions for necessary action.
CID additional director general of police N Sanjay wrote letters to the DGPs, additional DGP, CB-CID and Commissioners of Stamps and Registration of Telangana, Tamil Nadu and Karnataka and the Central government agencies, including Central Board of Direct Taxes (CBDT), ED and Serious Fraud Investigation Office (SFIO), as the company extended its operations to the neighbouring States. N Sanjay, in a statement, said he has shared the preliminary findings of the investigation with other agencies in order to examine the aspects falling under their respective jurisdictions for necessary action.
He added the investigation officers identified multiple financial irregularities in Margadarsi company such as misuse of subscribers chit amount to the tune of several crores, violation in maintaining the mandated bank accounts to mask their fraudulent activities, operation of illegal scheme of deposits and covering up defaults by offering 4%-5% interest on the deposits secured from the chit subscribers, illegal diversion of funds pertaining to the chit subscribers towards other investments, accepting large amounts of subscriptions in cash from the subscribers in violation of the Income Tax Act, non-deduction of TDS on the payments made and eluding administrative activities, which indicate a large scale of money-laundering.
“Investigation into the massive financial irregularities and other violations need more hands from other specialised wings and experts,” the CID Additional Director General of Police added.