Authorities from Andhra Pradesh’s Stamps and Registration Department carried out searches at 18 locations and offices of Margadarsi chit fund company on Tuesday, November 15. Margadarsi is owned by media baron Ramoji Rao of Eenadu group, who is seen as a supporter of the opposition Telugu Desam Party (TDP). The raids happened in the background of former Congress MP Undavalli Arun Kumar’s allegation that Ramoji Rao is involved in a Rs 2,600 crore scam. It is alleged that Margadarsi collected Rs 2,600 crore from depositors, in violation of the Reserve Bank of India guidelines.
The Stamps and Registration Department in a statement said that on preliminary investigation, they found the balance sheet for 2021-22 indicating diversion of funds. Authorities said that they have noticed serious irregularities on the part of foremen in protecting the money of the depositors.
Earlier this month, Undavalli Arun Kumar, who has been pursuing the case against Margadarsi since 2006, said that Ramoji Rao should be investigated by the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI). In 2014, the Andhra Pradesh High Court dismissed the case after Ramoji Rao dissociated himself from Margadarsi. The former MP challenged this claim and came out with contradicting documentary evidence. Arun Kumar presented the balance sheet of Margadarsi Chit Fund company for the year 2021, which had the signature of Ramoji Rao as the chairman of the company.
In 2020, Arun Kumar had approached the Supreme Court challenging the 2014 High Court verdict. Recently, the YS Jagan Mohan Reddy-led YSRCP government had impleaded in the case by filing a special leave petition in the Supreme Court. Arun Kumar alleges that Margadarsi had a bank balance of Rs 1,688 crore but Ramoji Rao did not disclose the sources of the revenue. According to Arun Kumar, Margadarsi cannot collect deposits from the public as per the RBI rules. Ramoji Rao did not respond to these allegations.
Earlier in August, Ramoji Rao had a meeting with Union Minister Amit Shah, which led to the speculation that the media baron could have proposed an alliance between the TDP and the BJP ahead of the 2024 Assembly elections in Andhra Pradesh.
Watch: Home Minister Amit Shah meets Junior NTR, Ramoji Rao in Hyderabad