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AP govt to conduct forensic audit of Margadarsi Chit Fund accounts
Inspector General of Stamps and Registrations and Andhra Pradesh Registrar of Chit Funds V Ramakrishna said:“The state-wide inspections conducted by the department in 35 chit fund companies in the last few days have revealed large scale financial irregularities”.
Chief minister Y S Jagan Mohan Reddy-led Andhra Pradesh government on Monday ordered to conduct a forensic audit of the accounts of Margadarsi Chit Funds Private Limited, promoted by Eenadu group chairman Ch Ramoji Rao.
Inspector General of Stamps and Registrations and Andhra Pradesh Registrar of Chit Funds V Ramakrishna told reporters in Vijayawada: “The state-wide inspections conducted by the department in 35 chit fund companies in three phases in the last few days have revealed large scale financial irregularities”.
In a preliminary assessment, the department found major violations by chit fund companies for accepting deposits in the name of security, offering interest payable, and not maintaining separate balance sheets, officials privy to the matter said. They were also found to have siphoned the money and diverted it for non-chit fund activities; accepted fixed deposits which is against rules etc, one of the official said.
The department will issue show cause notice and conduct a forensic audit of Margadarsi Chit Funds, Ramakrishna said. “But the company authorities have not cooperated with the authorities. Margadarsi has been ordered to provide details of the second account, but until today, details are yet to be submitted,” he said.
The IG said the department will further conduct inspections at the Hyderabad branches of Margadarsi in cooperation with Telangana authorities. Despite repeated attempts, the Margadarsi authorities could not be reached for comments.
