In a major setback to the Margadarsi Chit Funds Private Limited (MCFPL), the Supreme Court observed the need for a detailed scrutiny of the deposits by a former Court judge and referred the case to Telangana High court on Tuesday 9, 2024.
A bench comprising Justices Surya Kant and Viswanathan while hearing a petition concerning irregularities in Margadarsi chit funds observed “There is a need for a comprehensive review of the deposits collected so far. Hasn't the money been returned to any depositors yet? The details should be collected by issuing a public notice. For that, the Telangana High Court had already issued a final verdict referring to the case”.
The court further instructed a former High Court judge for the scrutiny. Further it said, “A thorough examination of the deposits should be done in two to three months. RBI should also be involved in the High Court process. Telangana, AP government, RBI, and Undavalli should hear arguments in this case. Telangana High Court should complete the trial of this case in another 6 months. We will not comment on this case. Let your arguments be heard in the Telangana High Court," said the two-judge bench.
