Amravati: In a major setback to the Andhra Pradesh government, the high court has suspended all police notices calling for the freezing of the bank accounts of Margadarsi Chit Funds.
Earlier, Andhra Pradesh Police had given notices to Margadarsi branch managers asking them to freeze the bank accounts of the Chirala, Visakha, and Seethampet branches. Challenging the same, the managers moved the High Court and got immediate relief as the court suspended all the notices.
The High Court directions come parallel to another such relief the court gave to Margadarsi Chit Fund Private Limited chairman Ramoji Rao and managing director Sailaja Kiran in the complaint by one G Yuri Reddy alleging transfer for shares through forgery.
There the court raised a strong objection over the jurisdiction of the state CID in the matter, and issued an interim order on Wednesday, suspending all further proceedings in the case registered by the CID for 8 weeks.
It is pertinent to mention that Margadarsi has accused Andhra Pradesh CID of acting with "malicious intentions" to damage its business 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 Company said in a statement issued earlier this year.
