The Supreme Court has dealt a significant blow to Margadarsi Chit Funds Private Limited, instructing the Telangana High Court to conduct a thorough examination of the deposits within a timeframe of two to three months, with the aim of completing the hearings within six months.
A division bench of the Supreme Court, comprising Justice Suryakant Sharma and Justice K.V. Viswanathan, convened in New Delhi on Tuesday to address allegations of irregularities in the Margadarsi chit funds.
Observing the necessity for a meticulous review of the deposits, the court decided to refer the matter to the Telangana High Court.
Emphasizing transparency, the court directed the issuance of a public notice to ascertain whether the funds collected through deposits had been repaid to the depositors.
Additionally, the Supreme Court requested the appointment of a former High Court judge to oversee the investigation. Notably, the court clarified that it was refraining from delving into the specifics of the case.
