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Our Bureau

Hyderabad , Nov. 8

The Chief Minsiter, Dr Y.S. Rajasekhara Reddy, has said that the State Government was examining whether it could intervene in the controversy related to Margadarsi Financiers.

Responding to queries at a press conference, Dr Reddy said, "The law will take its own course". He denied that there was any political conspiracy as alleged by the Opposition parties and the company.

Earlier, the Chairman of Ramoji Group, Mr Ramoji Rao, in a detailed statement said the allegations made by Mr Undavalli Arun Kumar, Congress (I) MP, against Margadarsi Financiers were part of a deep-rooted conspiracy. They were clearly directed to create panic among the depositors.

CHARGE DENIED

The MP's contention that the firm had violated Section 45-S of the Reserve Bank Act was not true. The section is not applicable to the deposits collected under the law related to the Undivided Hindu Family.

The deposits were collected only after taking legal opinion. The money collected was being invested in the Eenadu Group.

On Monday, the Cong (I) MP had urged the Finance Minister, Mr P. Chidambaram, to order an investigation into the affairs of Margadarsi Financiers as the firm was allegedly accepting deposits and unsecured loans from the public in violation of the existing rules and regulations.

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