A single-judge Bench of the Andhra Pradesh (AP) High Court comprising Justice N. Jayasurya on August 11 stayed all proceedings related to the winding up of chit groups of Margadarsi Chit Fund Private Limited (MCFPL), for which the CID had issued a show cause notice.
He stated in his interim order that issues regarding the proposed winding up (of the chit fund groups) are interlinked with the writ petitions filed by subscribers and have to be dealt with comprehensively.
Justice Jayasurya observed that orders of winding up in respect of some chit groups were already suspended in a Writ Petition (WP) filed by subscribers, and any further action pursuant to the notice issued by CID would affect chit subscribers at large in various groups/branches apart from having a cascading effect on the company.
