The Andhra Pradesh Police CID has registered three FIRs against Margadarsi Chit Funds Pvt Ltd (MCFPL) for several alleged irregularities and making use of ghost subscribers to siphon off legitimate subscribers' money, a police official said.
N Sanjay, Additional Director General of Police (ADGP), CID, alleged that Margadarsi was running chit membership without the knowledge of some people and impersonating common citizens (ghost subscribers) to siphon off money.
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"Large number of subscribers are turning up with complaints of non-payment of chit money and undue harassment for sureties which necessitated booking FIRs," said Sanjay addressing a press conference at AP police headquarters in Mangalagiri on Sunday.
The Registration and Stamps Department raided 37 Margadarsi branches in the past three days across the state, which resulted in the booking of FIRs at Anakapalli, Chirala and Rajamahendravaram.
Cases were booked under Indian Penal Code Sections 409, 420, 468, 471, 477–A, 120B, 467 read with 34 and Section 5 of Andhra Pradesh Protection of Depositors of Financial Establishments Act.
V Ramakrishna, commissioner and inspector general, Registration and Stamps Department alleged that Margadarsi was engaging its own employees such as agents and branch managers to participate in the auctions.
Based on the documents collected from Margadarsi branches by the department, Ramakrishna alleged that the auction process is being rigged.
Moreover, ADGP Sanjay said the CID has opened a Whatsapp account under the number 94931 74065 for subscribers to lodge complaints.