Let me see seized chit fund documents from Margadarsi chit funds: Ex-MP Undavalli Arun Kumar

RAJAMAHENDRAVARAM: Former Congress MP Vundavalli Arun Kumar demanded that the State government allow him to go through the documents seized from Margadarsi chit funds to prove the violation of the RBI Act. He said he has sent a letter to the Inspector General of the Stamps and Registration  Department to provide details of documents and allow him to scrutinise the documents under the RTI Act.

Speaking to media persons here on Saturday, he welcomed the State-wide swoop on chit fund companies, including Margadarsi by officials. He said the case of Margadarsi will come up for hearing in the Supreme Court on December 2 and the Andhra Pradesh Reorganisation Act, 2014 on  December 28.

Vndavalli alleged that Margadarsi chit funds was still collecting deposits from the public. Margadarsi financiers is a Hindu Undivided Family entity and is not permitted to collect deposits from the general public. Contrary to the RBI Act, it was allegedly collecting deposits and diverting the funds for the promotion of other firms, he charged.

Meanwhile, Margadarsi Private Limited, in a press release, stated that with three-day inspections yielding no evidence of any wrongdoing, officials started bringing pressure for making the company managers to sign a document they created showing lapses. It was intentionally done so as to use the document against Margadarsi in the court, it said.