Vundavalli Arun Kumar wants SEBI probe into Margadarsi chit fund case

Former MP Vundavalli Arun Kumar. File photo
| Photo Credit: Special Arrangement

Rajamahendravaram former MP Vundavalli Arun Kumar on March 14 appealed to the Andhra Pradesh government to write to the Securities and Exchange Board of India (SEBI), requesting it to probe into the irregularities unearthed in the cases involving Margadarsi Chit Fund Private Limited (MCFPL).

The Department of Registration and Stamps is investigating the irregularities allegedly committed by the MCFPL. A series of raids have been conducted on various branches of the firm across the State. 

Also read: Margadarsi chit fund chairman and MD conspired with branch managers to divert money, say probe officials

“The Registrar of Companies has submitted a report on the MCFPL, in which it suggested an inquiry into the issue by the SEBI. The State government should appeal to the SEBI to inquire into the issue,” Mr. Arun Kumar told the media here.

He alleged that the MCFPL did not deposit the money collected from chit fund subscribers in any national bank, violating the guidelines.