Several irregularities of Margadarsi Chit Fund came to light during raids, says Ambati Rambabu

The Margadarsi Chit Fund is delaying payment of prize money to its subscribers, citing lack of sureties, says the Minister

Brushing aside the allegations pertaining to victimisation of the Margadarsi Chit Fund, Minister for Irrigation Ambati Rambabu has said that the Stamps and Registration Department has been conducting raids on various chit fund companies across Andhra Pradesh, after the allegations of irregulairites by the Margadarsi surfaced.

Addressing the media at the YSRCP headquarters at Tadepalli on November 25 (Friday), the Minister said the Margadarsi had violated the law and resorted to several irregularities, which were brought to light by the officials. 

“The chit fund company is delaying the payment of prize money to its subscribers, citing lack of sureties. The auctioned prize money is being illegally reinvested in the other companies owned Ch. Ramoji Rao. Instead of maintaining individual accounts separately for each subscriber, the Margadarsi has maintained a single account for all,” said the Minister, adding that all these malpractice came to light during the recent raids by the stamps and registration officials.

The Minister also claimed that the chit fund company had withheld the auctioned prize money on several occasions, subjecting the subscribers to mental agony and harassment. He appealed to new subscribers to remain cautious during their financial dealings with the company. “The recent raids have revealed that all the Ramoji Group companies violated various financial laws,” he said.

Referring to the penalties imposed by the Andhra Pradesh High Court on some residents of Ippatam village for misleading the judiciary, the Minister said that the TDP and the Jana Sena Party (JSP) had raised an unnecessary hue and cry against the government to ‘hoodwink the people and spread falsehood’.

Condemning the remarks made by the TDP leaders with reference to the lost mobile phone of Rajya Sabha MP V. Vijaya Sai Reddy, he said that it only revealed their ‘despair and frustration’.