The Andhra Pradesh government led by chief minister Y S Jagan Mohan Reddy on Monday decided to conduct forensic audit of the accounts of Margadarsi Chit Funds Private Limited, promoted by media baron and Eenadu group chairman Ch Ramoji Rao.
Inspector General of Stamps and Registrations and Andhra Pradesh Registrar of Chit Funds V Ramakrishna told reporters that state-wide inspections conducted by the department on various chit fund companies revealed large scale financial irregularities.
He said around 35 chit fund companies across Andhra Pradesh were searched in three phases to check violations, if any, in the interest of the public & to safeguard public money.
In a preliminary assessment, the Dept found major violations by chit fund companies such as STR chits & finance and Margadarsi Chit Fund Pvt ltd. for accepting deposits in the name of security, offering ‘interest payable’, and not maintaining separate balance sheets.
He said the department would issue show cause notice and conduct a forensic audit of Margadarsi Chits. He said the Margadarsi staff didn’t cooperate with the teams during the state-wide searches.
The IG further added that they will further conduct inspections at the Hyderabad institutions in cooperation with Telangana authorities.
'In 2018, we took action against Kapil Chit Funds. Kapil Chit Funds has not been permitted a new chit till 2022'. The IG said that even in 2018, Margadarshi did not provide bank statements.
Margadarshi has been ordered to provide details of the second account, but until today, details have yet to be submitted, he added.
