Andhra CID harassing our subscriber network, making inquiries with malicious intentions: Margadarsi Chit Fund

Margadarsi Chit Fund has assured its vast network of subscribers that the company has not violated any income tax provisions and is duly following all the business guidelines issued by the Reserve Bank of India.

Hyderabad: Thanking its subscribers for their confidence in the company's functioning, Margadarsi Chit Fund Private Limited Tuesday assured them that it has not violated any income tax provisions and is duly following all the business guidelines issued by the Reserve Bank of India.

The company also slammed Andhra Pradesh Crime Investigation Department (AP-CID) for harassing its subscribers by sending them fresh notices based on claims that were "totally contrived, false and devoid of any merit".

"The company has been conducting its business well within the regulatory framework stipulated for the chit fund business very prudently. Our financial discipline is our strength and we do not leave any scope for violation of rules any time," the company said in an official statement.

It alleged that the Andhra Pradesh CID was making inquiries with "malicious intentions" to damage the business of Margadarsi and its customer network. "In order to create panic and harass all our subscribers insisting on their personal details even after their confirmation as members of chit, the AP-CID has been continuing its fishing and roving inquiries with malicious intentions to damage the business of Margadarsi and its customer network," the statement read.

The statement comes as an assurance to the subscribers especially in the backdrop of the Andhra Pradesh CID, which is probing the alleged financial irregularities in the company, sending fresh notices to the selected number of subscribers of the chit fund.

"After having obtained confirmation, the CID should not have interfered with their privacy as was observed by Hon'ble High Court of Telangana by way of an order in WP 45189/2022 and which is nothing but contempt of court proceedings with complete disregard. Despite Hon'ble Court directions, the AP-CID has been releasing Press Notes time and again with the sole aim of defaming the company by harassing all its customers across the State with large and deep-rooted conspiracy to destabilize an established business with an unblemished track record," Margadarsi Chit Fund said in its statement.

It said the "violations imagined by AP-CID in their statements were "totally contrived, false and devoid of any merit". "We once again firmly assure our subscribers that Margadarsi has never been involved in any kind of activities resulting in violation of rules and regulations governing the chit fund business including Chit Funds Act, 1982, Income-tax Act and all other Acts as may be applicable. The Margadarsi is regularly assessed to tax under scrutiny completely ensuring all due compliances thus leaving hardly any scope for violations," the statement added.