Margadarsi chit fund case : Subscribers with deposits over Rs.1 cr get CID notice

The Crime Investigation Department (CID) of the Andhra Pradesh police has issued notices to those who deposited more than ₹1 crore in cash as a one-time payment in media baron Ramoji Rao-owned Margadarsi Chit Fund Private Limited (MCFPL).CID chief PSR Anjaneyulu said the department has initiated a significant step to address the violations of regulations about cash deposits made by subscribers.

Notices have been issued to those individuals who have made cash deposits towards their subscription amount, contravening the guidelines set forth by the Reserve Bank of India (RBI) and the Central Board of Direct Taxes (CBDT) regarding cash transactions.

‘To determine the legitimacy of transactions’

As part of the investigation, the CID has specifically targeted subscribers who made cash deposits in chit groups amounting to over ₹1 crore.These individuals are under scrutiny to determine the nature and legitimacy of their transactions.

The CID aims to ensure compliance with the regulations set by the RBI and the CBDT, which are designed to prevent money laundering, financial fraud, and other illicit activities, he said.The RBI, as the apex regulatory authority in the Indian financial system, has put in place guidelines to maintain the transparency and integrity of financial transactions, particularly in cases involving large sums of cash.

The CBDT has also introduced new rules governing cash transactions to enhance compliance and curb illicit practices, Anjaneyulu said.The Andhra Pradesh CID urged all affected subscribers who have received notices to fully cooperate with the investigation.

‘Assist in uncovering truth’

“By providing accurate and timely information, subscribers can assist the authorities in uncovering the truth and bringing the culprits to justice.The AP CID remains committed to upholding the integrity of the financial system and protecting the interests of the general public.

The investigation into the financial fraud cases involving MCFPL is a top priority, and all necessary measures are being taken to ensure a thorough and impartial inquiry,” he added.Earlier, the CID had served a notice to Ramoji Rao to appear before its officials at its regional office in Kanna Vari Thota, Guntur, on 5 July.

The notice stated that he was being asked to appear as the CID wanted to “facilitate a thorough and effective investigation” of the case and to “elicit and obtain clarifying information” from him.The CID examined Ramoji Rao and his daughter-in-law Sailaja Kiran, who is the managing director of Margadarsi, at her residence on 3 April.