AP CID seeks Central agencies to probe Margadarsi chit group

New Delhi: The Crime Investigation department of Andhra Pradesh met the Central enforcement agencies and requested to take action against Margadarsi chit group for allegedly involving in money laundering, siphoning of funds, corporate funds and helping ghost subscribers. According to the crime investigation department of Andhra Pradesh statement, during the probe the department found alleged illegal activities such as money laundering, siphoning of funds, corporate frauds, helping ghost subscribers to indulge in unaccounted transactions and evasion of income tax. As these violations pertain to the domain of central enforcement agencies, in the last two days officials met the concerned agencies in Delhi and requested them to take timely action against the company, the crime investigation department of Andhra Pradesh said in a statement. Deeper probe into the account books of Margadarsi is imperative to put a stop to this alleged blatant exploitation by the Margadarsi group, said N Sanjay, Additional Director General of Police, Crime Investigation Department of Andhra Pradesh.

According to the CID statement, it has been established prima facie that the margadarsi group is allegedly committing the violations by fraudulent accounting practices such as Inflating cash balances in the name of ‘cheques on hand’ and ‘cash on hand’ at the branch level. Not filing the mandatory balance sheets and accounts as per the Chit fund Act either at the branch level or with the Registrar of Chits at State level, not submitting the necessary documents to the regulators who are duty bound to find out the genuineness of the bloated figures reported upon Seven FIRs were registered upon the complaint of the Commissioner & IG , Stamps & Registrations, AP under section 420, 409, 120(B), 477(A) read with 34 IPC and Section 5 of APPDFE Act-1999 and Sec 76, 79 of Chit Funds Act 1982 of CID Police Station, AP, Mangalagiri, it said. All the accused A1 to A5 were questioned once. However they were giving evasive answers and not producing required information or documents either to the chit registrar or to the CID, claimed the CID statement.

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