For the first time in the ongoing investigation into the alleged financial fraud cases involving Margadarsi Chit Funds Pvt. Ltd. (MCFPL), the A.P. Crime Investigation Department (AP-CID) has issued notices to the individuals who have made cash deposits towards their subscription amount, allegedly contravening the guidelines set forth by the Reserve Bank of India (RBI) and the Central Board of Direct Taxes (CBDT) regarding cash transactions.
So far the investigation agency focused only on the management, maintenance of their accounts, and transactions but now went a step ahead in the case.
Director General of Police, CID, P. Sitharama Anjaneyulu, in a press release on Tuesday here, said, “As part of this investigation, the CID has specifically targeted subscribers who made cash deposits in chit groups amounting to over one crore rupees. These individuals are under scrutiny to determine the nature and legitimacy of their transactions. 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.”
“The A.P. 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 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.
Charges denied
Meanwhile, responding to the CID notices to its subscribers, MCFPL denied any violations as alleged by the CID.
“Margadarsi assures all our subscribers that the company has not violated any of the provisions of the Income Tax Act and the guidelines issued by the Reserve Bank of India. The company has been conducting its business well within the regulatory framework stipulated for the chit fund business very prudently.”
