Date:03/12/2006 URL: http://www.thehindu.com/2006/12/03/stories/2006120304650600.htm

Andhra Pradesh

Margadarsi accepting fresh deposits: MP

Special Correspondent

HYDERABAD: Congress MP Vundavalli Arun Kumar said here on Saturday that M/s Margadarsi Financiers was collecting deposits even after the Reserve Bank of India (RBI) asked not to accept any fresh deposits or renew matured deposits.

At a press conference following the statement issued by the Ministry of Finance on the action taken on complaints against Margadarsi Financiers, he said the unincorporated body had misled the RBI by submitting that it had stopped collection of deposits from September 16 itself.

Producing photocopies of deposit receipts issued to investors in November, he alleged that the company was continuing to mislead people through a media campaign. He asked the management to voluntarily disclose its financial position and fulfil its commitment to ensure transparency.

Mr. Arun Kumar said the company had unauthorisedly collected deposits totalling over Rs. 2,400 crore and used it for other purposes.

According to its balance sheet, the company had incurred a loss of Rs.1819 crore in 2005-06, he said.

The Congress MP said he would bring the alleged irregularities of the company to the notice of the RBI and the Union Finance Ministry to seek further action against it.

CPI State secretary K. Narayana said the Government should ensure that there was no injustice to depositors of the firm.