The Andhra Pradesh CID officials have registered multiple FIRs against the Margadarsi Chit Fund over the alleged financial irregularities which also include the diversion of the depositors’ money into mutual funds and other markets for personal gains. Multiple CID teams searched the Chit Fund branches in Visakhapatnam, Rajahmundry, Eluru, Vijayawada, Guntur, Narasaraopeta, and Anantapur at the same time and the searches have been concluded by the end of the day.
FIRs were registered under the sections Indian Penal Code, Section 5 of the Andhra Pradesh Protection of Depositors in Financial Establishments Act, and Sections 76 and 79 of the Chit Funds Act.
The CID on Saturday conducted raids at the residences of Margadarsi managers and other prominent officials over the alleged Margadarsi Chit Fund Scam. They took Vijayawada branch manager Srinivas into custody for questioning.