The officials of the Andhra Pradesh Stamps and Registration Department conducted searches in the Margadarsi Chit Fund offices across the state on Tuesday. The officials found several irregularities in the chit fund activities including diversion of money collected from the people through chits.

The officials, during the initial search found that the chit fund company, which is owned by Cherukuri Ramoji Rao of Eenadu Group, had violated the rules and regulations of the Reserve Bank of India and the Chit Fund Act 1971.

There have been cases of violation of rules by the Margadarsi in the past too. Cases were filed based on the complaint given by then Congress MP, Vundavalli Arun Kumar. Though the Telangana High Court had dismissed the case a few days before the State bifurcation, the former Congress MP had challenged the high court orders in the Supreme Court.

The State government too had filed an implead petition in the Supreme Court against the Margadarsi Chit Funds. In turn, Ramoji Rao, too had started a political battle against the ruling YSR Congress through his Eenadu group media houses.

As things stand here, the officials of the Stamps and Registration Department conducted searches in all the offices of the Margadarsi Chit Fund Company. The reports say that the officials have seized some records of the company during their preliminary searches.

It is to be seen how Ramoji Rao would respond to these searches in his Eenadu paper and Etv news channel. Quite interestingly, no media in Andhra Pradesh had reported these searches in the Margadarsi Chit Fund by the state government officials.

The raids were conducted in 18 Chit Fund Companies in the state including Margadarsi Chit Fund Company.