Senior IPS officer P Seetha Ramanjaneyulu, who has been appointed as full additional charge as Additional Director General of Crime Investigation Department of Andhra Pradesh police on Tuesday, launched a crackdown on Margadarsi Chit Funds within hours of assuming the charge.
While his predecessor N Sanjay, who went on a sick leave, focussed on the promoters of Margadarsi including its chairman Ch Ramoji Rao and his daughter-in-law Sailaja Kiron, the new CID chief has targeted the high-value subscribers of the chit fund company.
Alleging that many subscribers had made cash deposits in Margadarsi, Ramanjaneulu said notices have been issued to those individuals who have made cash deposits towards their subscription amount, contravening the guidelines set forth by the Reserve Bank of India (RBI) and the Central Board of Direct Taxes (CBDT) regarding cash transactions.
As part of the investigation, the CID has specifically targeted subscribers who made cash deposits in chit groups amounting to over Rs 1 crore.
“These individuals are under scrutiny to determine the nature and legitimacy of their transactions,” he said.
The CID's aim is to ensure compliance with the regulations set by the RBI and the CBDT, which are designed to prevent money laundering, financial fraud, and other illicit activities, he said.
The new CID chief said the CID urges all affected subscribers who have received notices to fully cooperate with the investigation. By providing accurate and timely information, subscribers can assist the authorities in uncovering the truth and bringing the culprits to justice.
“The AP CID remains committed to upholding the integrity of the financial system and protecting the interests of the general public. The investigation into the financial fraud cases involving MCFPL is a top priority, and all necessary measures are being taken to ensure a thorough and impartial inquiry,” he added.