Margadarsi describes public notice of Registrar of Chits as imaginary

VIJAYAWADA: A day after the public notice of the Registrar of Chits to subscribers against the alleged irregularities in Margadarsi Chit Fund Private Limited (MCFPL), the firm on Sunday gave a detailed counter to it. It termed the notice ‘imaginary, arbitrary and perverse allegations.’

“The Registrar has gone to the extend of making the allegations when the subject matter is still sub judice in court and the sub-registrars have not filed any counters to the writ petitions filed by the company,’’ MCFPL said, in a statement. A detailed counter was given by the firm to the seven allegations made against it in the public notice.

On the allegation that payments to prized subscribers were getting delayed and in some cases beyond more than four months, MCFPL maintained that there was no delay as alleged as it is well within its rights to demand sufficient security and it diligently follows the Act in this regard.

Responding to the charge that funds were received from the public arbitrarily flouting all the provisions of the Chit Fund Act, MCFPL said the Chit Fund Act does not mention or has any clause preventing the subscription amount collection before the commencement. ‘The assistant registrars have resorted to making imaginary and baseless allegations, blatantly to bring disrepute to the company,’’ the statement said.

On the allegation that bank operations of MCFPL were being handled by unauthorised persons from the corporate office instead of foremen, the company said in order to have effective centralised control mechanism, only the dual cheque signing power is entrusted with the senior staff, who are stationed in the registered office of the company in Hyderabad, but the cheques are issued only as per the instructions of the branch manager concerned and forwarded to the branches concerned for disbursement to subscribers.