AP seeks dismissal of Margadarsi's petition; Telangana remains neutral

Andhra Pradesh requested the court to order the transfer of Rs 5.15 crore lying in an escrow account to the state exchequer or the RBI.
Telangana High Court
Telangana High Court(Photo | Express)
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HYDERABAD: Andhra Pradesh and Telangana have taken divergent stands on the continuation of criminal proceedings against Margadarsi Financiers and the late Ch. Ramoji Rao for allegedly accepting public deposits in violation of Section 45S of the RBI Act.

Following the Telangana High Court’s directive to both states to submit their stance on the matter, AP urged the court to dismiss the criminal petition filed by Margadarsi seeking quashing of the criminal proceedings against it and adjudicate on the necessity of continuing the criminal case against the firm.

Additionally, Andhra Pradesh requested the court to order the transfer of Rs 5.15 crore lying in an escrow account to the state exchequer or the RBI.

In contrast, the Telangana government did not take a definitive stance on the continuation of the criminal proceedings, instead saying that it would abide by the court’s decision.

On Friday, when the matter came up before the bench of Justice P Sam Koshy and Justice N Narsing Rao, the latter recused himself from hearing the case, stating that he had represented Margadarsi as an advocate.

The case will be assigned to another bench.

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