We have received many complaints over the operation of ghost subscribers and agents in the Margadarsi Chit Funds Private Limited (MCFPL), and unearthed huge irregularities during our investigations, say Additional DGP, Crime Investigation Department (CID), N. Sanjay, and Inspector General of Registration and Stamps Department V. Ramakrishna.
Addressing the media at the A.P. Police Headquarters at Mangalagiri, near here, on August 20 (Sunday), the officers said that irregularities such as non-payment of chit amount, insistence on sureties, and siphoning off money by the branch managers had come to light during their verifications.
Based on the complaints lodged by the gullible subscribers, joint teams had conducted inspections in 37 MCFPL branches across Andhra Pradesh and verified the records, Mr. Sanjay said.
Citing a few instances of irregularities, Mr. Sanjay said that a complainant by name Subramanyam of Sullurpet had alleged that the company had enrolled his name in a chit group and created fake documents using his Aadhaar number though he was not a member of the chit group and had never visited the company’s branch office at Chirala. Based on his complaint, the Chirala One Town police had registered a case, Mr. Sanjay added.
In another complaint, A. Venkateswara Rao of Anakapalli alleged that he had been paid only ₹20 instead of the full chit amount of about ₹4.7 lakh despite paying all the instalments. The Anakapalle Town police had registered the case, Mr. Sanjay said.
Citing another instance, Mr. Sanjay said that following a complaint lodged by Korukonda Vijay Kumar of Rajamahendravaram, the Two Town police had arrested S. Ravi Shankar, the local branch manager of MCFPL, on the charge of diverting money into the accounts of some ghost subscribers.
“Ghost subscribers and agents have been created to retain the money and reduce the liability of the chit fund company,” alleged CID Superintendent of Police (Economic Offences Wing) Amit Bardar.
During inquiry, it was found that notices had not been issued to the genuine subscribers and money was diverted without their knowledge, he added.
“The foremen of the company have not been discharging their duties under Section 20 of the Chit Fund Act. The management has neither conducted any internal audit nor initiated action against the erring staff,” Mr. Amit said.
Mr. Ramakrishna said that they were receiving more complaints, and cases would be registered after verifying them.
“For the convenience of the subscribers, a WhatsApp number (9493174065) has been created to enable them to lodge their complaint,” he said.
