The Andhra Pradesh Crime Investigation Department (CID) on Tuesday served notices to Cherukuri Ramoji Rao, the Chairman of Margadarsi Chit Fund Private Limited and his daughter-in-law and Managing Director Sailaja Cherukuri in connection with Chit fund scam. As per the notice, the said persons have been asked to be present at their residence/office on March 29 or March 31 or April 3 or April 6 and cooperate with the investigation.
Last November, Andhra Pradesh’s Registration and Stamps Department said that there have been malpractices in the functioning of chit fund companies in the state and show cause notice would be issued to those who have violated the rules. V Ramakrishna, Inspector General (Registration and Stamps Department) had said forensic auditing will be carried out in Margadarshi chit fund companies at a press conference.
The official had said that the Stamps and Registrations Regulatory Authority will be the nodal agency for chit-fund institutions and carry out regular inspections. He had said the department conducted inspections at 12 chit fund companies on October 21, five organisations were inspected on October 31 and 18 units were inspected on November 15. He had said a total of 35 units have been inspected.
Ramakrishna had said that irregularities included using money borrowed through chit fund for “other purposes” “We noticed that some are doing chit-fund business without registration. We have registered a case against STR chits in Bhimavaram and those who are doing chit fund business without permission. Some chit-fund companies are doing other business. We will take action against them. Money borrowed for chit should not be used for other purposes,” he had said.
He had said inspections were carried out on November 15 at 15 units of Margadarsi Chit Fund company and said there was some difficulty in inspections. “Show cause notices will be issued to companies that have violated the rules, including the guidelines of the company. We will take further action after getting the reply to the show cause notices,” he had said.