The Crime Investigation Department (CID) authorities of the Andhra Pradesh police began questioning media baron and Eenadu group chairman Ch Ramoji Rao and his daughter-in-law Sailaja Kiran on Monday in connection with the Margadarsi Chit Funds scam.
A large group of 200 policemen from the Andhra CID went to Sailaja’s residence, who has been named as Accused No.2 (A-2) in the alleged irregularities in the Margadarsi Chit Funds, of which she is the managing director.
At the same time, Ramoji Rao, who happens to be the chairman of Margadarsi Chit Funds, also reached Sailaja’s house.He has been named as Accused No.1 (A-1) in the case.Tight security arrangements have been made around her residence.The CID authorities are questioning Ramoji Rao and Sailaja separately, and they may be questioned together again later in the evening.
The CID issued notices under Section 160 of the Criminal Procedure Code to examine them at their residence/office and provided four different dates.The probe agency has also summoned branch managers of various branches of the chit fund company.
The notices have been served for alleged cheating, diversion of deposits into mutual funds, which are contingent on capital markets’ risks and violation of the Chit Fund Business Act and Reserve Bank of India (RBI) guidelines.
Dramatic scenes were witnessed during Ramoji Rao’s questioning on Monday at his son Kiran’s residence in Jubilee Hills.
A picture emerging from his grilling showed him lying on a bed with a belt heavily strapped around above his waist for back support.According to sources, the veteran tycoon has been suffering from acute back pain because of which he had to attend the questioning while lying on a bed.
