The Hindu Business Line : AP orders probe into Margadarsi

The Andhra Pradesh Government today appointed former Chairman of the Insurance Regulatory Development Authority (IRDA), Mr N. Rangachary, to examine the affairs of Margadarsi Financiers.

Through a Government Order (GO), the State Government also made Mr Krishnam Raju, Inspector General of Police, CID, the Authorised Officer, under Sections 45(T) and 58(E) of Reserve Bank of India Act, 1934.

Mr Rangachary, who is Financial Advisor to the State Government, will submit a report on whether Margadarsi Financiers, run by the media baron, Mr Ramoji Rao, raised deposits from the public in violation of the provisions of the RBI Act or the Andhra Pradesh Protection of Depositors of Financial Establishment Act, 1999.

He will also examine if there is reason to believe that the financial establishment is acting in a manner prejudicial to the interests of the depositors and whether it is not likely to return the deposits collected from the public, the GO said.

From the reports made available to the Government, Margadarsi Financiers is reported to have accumulated losses and, on the other hand, raised deposits from the public in excess of Rs 2,000 crore, the GO issued by the Chief Secretary, Mr J. Hari Narayan, said.

More Stories on : NBFCs | Economic Offences | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ICICI Bank to raise $1 b yen loan

Pension fund investments: CMs' meet soon

Mobilising resources — Banking by innovation

Rupee gains on dollar inflows

PG diploma course in insurance

AP orders probe into Margadarsi

Bank of India, Union Bank, Dai-Ichi sign MoU for life insurance venture

`Most Indians lack cover against critical illnesses'

`RBI will aim to contain inflation at 5-5.5 pc '

Central Bank to distribute Tata Mutual's products

Kerala Power Finance pays 20% dividend

HDFC Bank hikes prime rate to 13.5%

Bond prices fall by 12 paise

IDBI, LIC to co-finance infrastructure projects

Co-branded card for truck owners

Kotak Mahindra deposit plans