HYDERABAD: The Telangana High Court on Friday expressed displeasure with the Andhra Pradesh and Telangana governments for failing to file counter-affidavits in the Margadarsi Financiers case.
The court termed the delay “intolerable,” especially when the case was referred for hearing by the Supreme Court and has been postponed 13 times since hearings began in June 2024.
The court, while granting one final opportunity, directed the governments to submit their counter-affidavits within three weeks. It warned that failure to comply would require the principal secretaries of the relevant departments from both states to appear and provide explanations, either in person or online. The next hearing is scheduled for January 31, 2025.
The case centers around the allegations of Margadarshi Financiers, owned by late Ramoji Rao, violating the Depositors’ Protection Act. A joint high court ruling on December 31, 2018, dismissed a complaint filed in the Nampally court seeking action against Margadarshi.
However, ex-MP Undavalli Arunkumar and the then AP government appealed against the verdict in the Supreme Court. Margadarshi and late Ramoji Rao also approached the apex court, challenging portions of the verdict.
On April 9, 2024, the Supreme Court set aside the HC judgment and directed further proceedings to clarify facts related to the collection of deposits. It instructed the HC to hear all stakeholders, including Undavalli Arunkumar and the Andhra Pradesh government.
The bench, comprising Justice Sujoy Pal and Justice G Radharani, resumed hearings on Friday afternoon. Senior advocate Siddhartha Luthra appeared on behalf of Margadarshi, while former MP Undavalli Arunkumar and amicus curiae senior advocate L Ravichander, along with AP Special GP Rajeshwar Reddy and Telangana PP Palle Nageshwar Rao, represented the other parties.
Margadarshi’s counsel informed the court of a 200-page rejoinder filed during the hearing, highlighting that the Andhra Pradesh and Telangana governments had yet to submit their counters. Meanwhile, the Reserve Bank of India (RBI) requested three weeks to file an additional affidavit addressing the rejoinder.
Undavalli Arunkumar brought to the court’s attention that copies of Margadarshi’s submissions had not been provided to him. The court directed Margadarshi’s counsel to supply the documents by Monday.
The bench ordered the High Court registry to send a copy of its directives to the Advocate General’s offices of both states by Monday to ensure compliance. It also cautioned Margadarshi’s counsel, Siddhartha Luthra, against interruptions during the announcement of interim orders. With no objections raised by any party, the court adjourned the next hearing to January 31, 2025.