Hyderabad (Telangana) : The Telangana High Court questioned the AP CID as to how it issued a look-out circular (LOC) against the Managing Director of Margadarsi Chit Fund in violation of the court's orders not to take any 'strict action' in the matter. The court said the look-out circular amounted to strict action and questioned whether it was not a contempt of court on the part of the AP CID or not.
When the lawyer arguing for AP CID sought time to file their affidavit in the matter, the High Court adjourned the hearing to December 15. The court ordered the CID in its order on March 21 not to take strict action in the Margadarsi case but a lookout circular was issued against Margadarsi MD in violation of that and the assets of the company were attached.
Later, the Margadarsi Chit Fund Pvt Ltd and the company MD Ch. Sailaja Kiron filed separate contempt of court petitions demanding action against AP CID officials under contempt of court charges.
Justice K. Surender of Telangana High Court took up the hearing on Tuesday. Presenting arguments on behalf of Margadarsi, senior advocate Dammalapati Srinivas and advocate Vasireddy Vimal Varma said told the court that AP CID had sought time during the last hearing to file an affidavit seeking forgiveness for contempt of court but no affidavit has been filed.
Then, Kailasnath Reddy, advocate for AP CID, said that he had filed a counter explaining why the AP CID lookout circular had to be issued. The judge intervened and said that if that was AP CID's answer, appropriate orders would be issued in the contempt of court matter. CID's advocate continued his arguments and said that the Margadarsi MD had gone abroad without giving any information to them and hence CID had issued the LOC as a precautionary measure.
The judge rejected CID's argument, saying precaution was not a valid reason as the issuance of LOC amounted to strict action in violation of the court order. "Was the LOC issued in violation of a court order or not?" the judge asked CID lawyer. When the judge said he was going to issue orders under contempt of court, the CID lawyer sought some time again for filing the affidavit on the LOC matter. Then, the judge adjourned the hearing to December 15 saying that he would leave this matter to the decision of the AP CID.
AP CID Additional DG Sanjay, Additional SPs S Rajasekhar Rao, Ch Ravikumar and Chief Secretary of AP Home Department Harish Kumar Gupta attended the court as per the orders given by the court in previous hearing. The judge ordered all these officials to attend the next hearing as well.
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