Andhra Pradesh CID has registered multiple FIRs against media baron Cherukuri Ramoji Rao the chairman of Margadarsi Chit Fund Private Limited and his daughter-in-law and managing director Sailaja Cherukuri across the state alleging siphoning off money received from the depositors and committing various other violations of the Chit Fund Act, 1982.

In November last year, Andhra Pradesh government under Chief Minister YS Jagan Mohan Reddy reopened the Margadarsi scam case,  which was initially alleged by former Congress MP Vundavalli Arun Kumar. The Chief Minister has often accused Ramoji Rao of being a part of the gang of four who are key to attempts to enable TDP chief N Chandrababu Naidu to return to power, dismantling the YSRCP government.

The raids against MCPL began months after Rao met Union Home Minister Amit Shah apparently to broker an alliance between the TDP and the BJP. Initially, the stamps and registration department conducted inspection of the branches of MCPL.

After several irregularities and violations of the Chit Fund Act came to light FIRs were lodged with CID which took up investigations and conducted searches in multiple places in Visakhapatnam, Rajamahendravaram, Eluru, Vijayawada, Guntur, Narasaraopeta and Anantapur. In some places like Eluru and Anantapur the staff were found to have absconded.

The FIR lodged against Rao and his daughter- in-law in Vijayawada on 10 March read, “it is clearly discerned that Sri Cherukuri Ramoji Rao and Smt Sailaja Cherukuri who are the chairman and managing director respectively of the Margadarsi Chit Fund Private Limited and are looking after the day to day affairs of the company conspired with the manager of Labbipeta Branch and with some unknown persons designedly and coloufully (sic) have been diverting the subscribers’ money for their own undue enrichment and personal gain with the subscribers’ amounts from various chit groups and are indulging in commission of offences under various provisions of law.”

The FIR was lodged by the assistant registrar of chits of Vijayawada, NTR district. Similar FIRs were lodged in Visakhapatnam, Kakinada, Eluru, Guntur, Kurnool, Anantapur. Following the registration of FIRs the CID then carried out raids in various branches of MCPL.