(Image source from: Sakshipost.com)

Margadarsi Chit Funds To Shut Down?:- On July 30, a notice has been given to all the subscribers of the Margadarsi chit fund stating that the Margadarsi was alleged to have many financial irregularities, criminal violations and diversion of funds under the Andhra Pradesh Registrar of Chits. Registrar on several newspapers gave a publication that Ramoji Rao owned Margadarsi chit group will be wind off.

Any member/ subscriber who is having objections/concerns over the wind-up can come up with the writing to the deputy registrar of chits within 15 days from the date of publication of the notice. On Friday, CID attached Rs 15.81 Cr of Margadarsi properties relating to a fund scam.

Several irregularities have been noticed in Margadarsi chits funds, said Registrar. The notice mentions that the Deputy Registrar of Chits is responsible to protect the interests of Chit subscribers and as they say that Margadarsi Chit Fund has violated the provisions of the Chit Fund Act wanted to wind off under the act.

The notice read, “For the tickets held in the name of Margadarsi Chit Fund Pvt Ltd, the payment was made by the subscription money paid by the unrelated members of the group (other chits group) but not paid by the company. This is a major violation. As per the provisions of the Chit Fund Act, tickets held in the name of the Company (vacant chits) shall be paid by the company, i.e., Margadarsi Chit Fund Private Limited, out of its own funds. As the chit company instead of paying chit subscriptions from its own funds, diverted the money of the subscribers belonging to other groups, it was found that the prized subscribers (premium subscribers) were being paid with inordinate delays. Payments to prized subscribers were delayed for more than four months in some cases,”.