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The Y S Jagan Mohan Reddy government in Andhra Pradesh has sought a comprehensive probe by Enforcement Directorate and Income Tax department into the alleged financial fraud indulged in by Margadarsi Chit Funds Private Limited.
This was confirmed by Andhra Pradesh Crime Investigation Department additional director general N Sanjay on Thursday. He said there were serious violations of chit fund regulations committed by Margadarsi, resulting in substantial financial losses for investors who had placed their trust in the scheme.
He confirmed that the Income Tax (IT) and Enforcement Directorate (ED) have been alerted to the alleged Margadarsi frauds, underscoring the gravity of the situation.
Over 800 victims of high-value chit schemes have suffered a collective loss exceeding Rs 100 crore, he said.
Sanjay raised concerns about the company's alleged involvement in collecting funds under the guise of ghost subscribers.
He said a substantial 40% of chit groups within the Margadarsi Chit Fund were operating without any subscribers.
He also noted practices like the prolonged extension of auctions and the operation of chit groups devoid of subscribers.
Sanjay voiced his concern over the investigation's challenging lack of cooperation, especially from the main accused Ch Ramoji Rao and his daughter-in-law Shailaja Kiran.
He underscored the necessity of thoroughly examining Margadarsi Chits' operations and disclosed that some media reports inaccurately portrayed the CID's efforts as causing disruptions in everyday business activities.
He said approximately 3,000 subscribers were unaware of the payments they've been making to Margadarsi and Margadarsi Chit groups.
“The investigation has also identified around a hundred of ghost subscribers, who have had their Aadhaar, and other details used without their knowledge,” Sanjay said, adding the CID is probing how various companies managed to pay substantial amounts for multiple chits.
