PNS n vijayawada
Stamps and Registrations Inspector General, Ramakrishna, has said that records of Margadarsi are not maintained properly and there are doubts about whether the money of the customers who invested in Margadarsi is safe or not. Addressing the media persons here on Monday, Ramakrishna said that on November 15, as many as 18 units of Margadarsi Chit Fund Private Limited were inspected and searched. During the search, the non-cooperation of the foreman and the staff was noticed.
Large-scale violations and irregularities were unearthed. It was noticed that the representative foreman doesn’t have any control over the chit accounts and has no knowledge of the bank accounts and affairs of the chits business in the branch. They could not answer query and their only refrain is that they do not have information and all information, including that on bank accounts, is with the head office which is not in the State of Andhra Pradesh.
The IG further said that serious lapses were found during the inspection. They are non-payment of monthly subscriptions/installments in respect of multiple tickets held, non-payment of monthly subscription amounts and non-submission of surety for the chit amount availed during the 2nd draw against the foreman subscribed chit ticket non-disclosure of Revenue & Expenditure Account and Statement of Assets & Liabilities and Details of Investment as per Rule 28 read with Section 24 of the Chit Fund Act, non-maintenance of the ledger by MCFPL for each ticket in a chit showing the details of the subscription made as per Section 23, non-payment of subscription amount under Section 27, non-payment of subscription amount under Section 32, non-providing of security for the future subscriptions under Section 31, non-submission of Form XXI for each individual chit group and utilization of chit fund amounts in violation of Section 14, and accepting deposits under the guise of future subscriptions payable in violation of Section 12.
Ramakrishna said as per the Balance Sheet, it is observed that MCFPL never filed the Balance Sheet and Profit and Loss Accounts for the financial years post-reorganization of the combined State.
He further said that from the documents available from the public domain it is observed that Margadarsi Chit Fund Private Limited has been investing in non-Chit Fund businesses like the movie business, and TV business as the investee companies appear on their Balance Sheets submitted to the Registrar of Companies under the Companies Act.
The holding of shares by MCFPL in companies tantamounts to the investment of funds in other businesses which is a violation of Section 12 of the Chit Fund Act, 1982, said the IG and added that as these lapses are putting the subscribers’ money at risk, a show cause Notice is being issued intimating that stringent due diligence would be done before issuing prior approval for the commencement of any new chit and directing them, the IG said.
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