In a major setback to media baron Ramoji Rao, The Supreme Court on Friday rejected a plea to transfer cases related to the alleged irregularities of Margadarsi Chit Fund Private Limited, to Telangana. Ramoji Rao is the founder promoter of the controversial chit fund firm.
A division bench of the apex court cited the lack of cognizable reasons for transferring these cases out of Andhra Pradesh where they were registered. The categorical ruling and denial of the plea came during a hearing on Friday in Supreme Court on the matters related to Margadarsi. The highest court of the country, on this occasion, categorically ruled that there is no question of allowing petitions related to Margadarsi for hearing before it.
The division bench felt that the petitioners are free to approach the Andhra Pradesh High Court itself if they intend to press for a stay on the judicial proceedings related to Margadarsi. The Supreme Court also commented that these petitions would become redundant if the case itself is struck down. Relevant petitions can be filed with the Andhra Pradesh High Court itself, if such a need is felt, the division bench said.
The counsel representing the Andhra Pradesh government informed the Supreme Court bench that Margadarsi Chit Fund has been doing business in Andhra Pradesh with an annual turnover of Rs 3,274 crores. The AP Crime Investigation Department (AP CID) has been investigating the cases against the firm, they added. They also appraised the apex court that the 150 witnesses in the Margadarsi cases hail from Andhra Pradesh and contended that the hearing of the cases should be carried out within the jurisdiction of the state as per the Chit Funds Act.
The AP government advocates also affirmed that the pendency of a quash petition in the Telangana High Court cannot become the basis for the transfer of cases. They also sought to remind that the Supreme Court had in the past refused to intervene in cases related to the matter falling under the jurisdiction of the Andhra Pradesh High Court.
The AP CID, after registering cases against Margadarsi, had summoned both Ramoji Rao and his daughter-in-law Cherukuri Sailaja Kiran, who is the managing director of the company. The veteran media baron was subsequently questioned at one of his Hyderabad residences under dramatic circumstances. Citing ill-health and indisposition, Ramoji Rao faced the CID questioning while lying on a bed and with a safety belt strapped around his waist.