HYDERABAD/ VIJAYAWADA: Justice CV Bhaskar Reddy of the Telangana High Court on Wednesday declined to grant interim orders in a series of petitions filed by Margadarsi Chit Fund Private Limited (MCFPL), seeking quashing of cases registered by the AP CID and halt to searches being conducted at multiple branches of the firm. The court gave verbal instructions to the AP CID not to disclose the details of the case to the media. It questioned the agency as to why it was holding a press meeting to disclose the case details.
Defending the move. the counsel representing the Andhra Pradesh government informed the court that there is a need to allay the fears of the public as approximately 300 complaints have been lodged with the police in the case. Raising questions about the continuous filing of petitions by MCFPL, the counsel said these cases involve substantial amounts of subscribers’ hard-earned money and there is a need to keep the details in the public domain. After hearing arguments from both sides, the court decided to adjourn the batch of petitions until September 12.
Conduct searches as per Chit Fund Act: AP HC
The Andhra Pradesh High Court on Wednesday said any searches on the premises of Margadarsi Chit Fund Private Limited should be done following the Chit Fund Act and searches should not be allowed in violation of the Act. The court also directed the law enforcement agencies not to disturb the day-to-day functioning of the firm while conducting searches as was directed by the Telangana HC.
The High Court issued the interim orders in a petition filed by the MCFPL management challenging the searches conducted by the Registrar of Chits at its offices. It also filed supplementary petitions seeking a stay on the proceedings issued for conducting searches and refraining the law enforcement agencies not to interfere in the day-to-day functioning of the firm.
In the interim orders issued on Wednesday, the court directed the CID or any other agency not to create any disturbance to the day-to-day functioning of the firm and to refrain from creating an atmosphere of fear during the searches. It also directed the officials to verify the chit books and chit records following Section 46 of the Chit Fund Act. However, the court said the authorisation given to some persons by the Deputy Registrar does not come as an appointment of chits inspector.