Andhra Pradesh Business Legal Legislature

Vundavalli demands judicial probe into Margadarsi scam

Rajahmundry: Former MP Vundavalli Arun Kumar on Saturday demanded constituting an inquiry by a retired judge of the Supreme Court into the financial irregularities in Margadarsi Chit Fund.

Talking to reporters here, he recalled that a Supreme Court Judge had remarked that the chairman of Eenadu and Margadarsi chit fund Ch. Ramoji Rao has two caps –one, the media and the second, industrialist.

And the media was used to cover up his faults as businessman, he alleged. “No business is above law. Records prove that Ramoji has violated the law,” he pointed out.

He also said that the Margadarsi case hearing is slated for December 2 in the court. Ramoji Rao had declared in 2006 that Margadarsi had stopped collecting deposits and filed an affidavit in the high court and Supreme Court that the deposits would be repaid, he noted. However, the deposits were still being collected in the name of receipts in Margadarsi chit fund, he alleged.

“It was shown that Rs.139 crore was outstanding amount in Margadarsi which has less than three per cent defaulters. What’s the secret? If banks are entrusted to Ramoji Rao, he will perhaps run them magnificently. He deserves not just Padmavibhushan but a Bharat Ratna. The state government is bold enough to conduct inspections into Margadarsi whose chairman is still Ramoji Rao. But in the court, he says he is not the chairman,” the MP stated.