4 months ago
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The Andhra Pradesh government’s attempts to seize the assets belonging to Margadarsi Chit Fund Private Limited (MCFPL) have faced a setback as the Guntur Principal District Judge (PDJ) Court on December 11 declared the confiscation of the MCFPL properties invalid.
In a statement, the MCFPL informed that the court ruled that the State government did not possess unlimited powers to confiscate the properties of Margadarsi Chit Fund Private Limited. The court has rejected the CID’s plea to finalise the interim attachment of assets totalling ₹1,050 crore, the statement said.
The CID had sought permission to temporarily seize MCFPL’s assets worth crores under the Andhra Pradesh Depositors Act, 1999.
However, MCFPL’s legal representatives argued that the company hadn’t defaulted on payments, and the confiscation would adversely affect its subscribers in four States. They also questioned why allegations were specifically made in Andhra Pradesh without sufficient grounds. Additionally, the CID failed to provide details of unpaid subscribers and their outstanding amounts, the MCFPL said.
“Consequently, the court deemed the confiscation orders to be unjustified and without proper grounds. The court has dismissed the CID’s requisitions. The Government Orders (G.O. 104, 116, and 134) authorising the interim seizure of the guide’s assets were also invalidated as the CID couldn’t establish the MCFPL’s failure to repay subscribers,” the release added.
