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The Margadarsi chit fund case was a financial fraud case in India involving the Margadarsi Chit Fund company. It has been alleged that the company had collected large sums of money from investors, promising high returns on their investments. However, the company failed to deliver on its promises and many investors lost their money. The case involved allegations of cheating, fraud, and misappropriation of funds by the company's owners and officials.

Several people were arrested and charged in connection with the case, which was widely reported in the media. The case highlights the importance of conducting due diligence and investing wisely to avoid financial frauds and scams. This case assumed prominence when Vundavalli Arun Kumar filed a case against Ramoji Rao for the simple fact that his brothers invested in the fixed deposits of Margadarsi.

According to CA Nagarjuna Reddy, Margadarsi Chit funds are not authorized to take funds according to RBI 45 (s) section. Although Ramoji Rao had collected 2650 crores from depositors and later even returned it, the fact of the matter is in the first place, deposits should not be taken. CA Nagarjuna Reddy revealed that Vundavalli was shocked to see the signature of Ramoji Rao on his brother's fixed deposit certificates, that too in the name of another company Margadarsi Financiers. Ramoji later claimed that he is authorized to sign on it, as it belongs to Hindu undivided family.

Another shocking incident was that this long pending case was dismissed by the Joint High Court of AP & Telangana on December 31st, 2018 which was its last day, before the court was bifurcated for AP and TS with effect from the next day. Vundavalli and others involved in the case weren't aware of this development and again this has been posted to the Supreme Court when LV Ramana was the chief justice.

Currently the hearings are going on in this case involving Margadarsi and Ramoji Rao. If proved, it may incur heavy penalties as well as two years imprisonment. This is the case of Margadarsi in a nutshell.


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