Margadarsi Chit Fund Private Limited, one of the leading chit funds in India with operations across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, has accused the AP government of launching a witch hunt against the company and parent Margadarsi Group.
The AP government under Chief Minister Y S Jagan Mohan Reddy is “spewing feud with vengeance” against the group and its Telugu daily Eenadu, the company said in a media response after the Assistant Registrar of Chits issued a full page advertisement in newspapers on Wednesday accusing Margadarsi of violating the Chit Funds Act, 1982.
Margadarsi further said that the action is a direct response to Eenadu “depicting the truth on the ground with its unbiased and unmatched journalistic values” while calling allegations of financial irregularities baseless and non-existent. It should be noted that rival Telugu newspaper Sakshi is owned by Reddy and many believe the enforcement action against the company is a result of this turf war and Eenadu’s vocal criticism of Reddy’s government.
The government, which filed 7 FIRs against the company this year based on “several imaginary and farfetched allegations”, has also been accused by Margadarsi of flouting court orders which had provided interim relief to the company.
“In complete contravention of the court’s orders, they have gone on to continue with intimidatory tactics by issuing winding up orders of chit groups in Andhra Pradesh. All these are being done even when the subject matter is still subjudice in courts and they have not filed any counters to writ petitions filed by the company,” Margadarsi said in a statement.