Date:28/12/2006 URL: http://www.thehindu.com/2006/12/28/stories/2006122805430600.htm

Andhra Pradesh

Margadarsi demands suspension of GOs

Legal Correspondent

Writ petition filed against Andhra Pradesh Government

An act of political vendetta: petitioners

"A.P. Government not legally competent to probe matter as RBI is seized of the issue"

HYDERABAD: Margadarsi Financiers, represented by Ramoji Rao, filed a writ petition in the High Court on Wednesday seeking suspension of two Government Orders issued on December 19 to look into allegations that it raised deposits in violation of the Reserve Bank of India Act.

The writ petition said the State Government's action was mala fide and an act of political vendetta against the petitioners (Margadarsi Financiers, Mr. Ramoji Rao and Ushodaya Enterprises) for the fearless exposes by Eenadu daily and ETV in exercise of the freedom of press. It named Chief Minister Y. S. Rajasekhar Reddy as the second respondent after the State Government.

"The impugned action is nothing short of an onslaught on the freedom of the media, that is Eenadu and ETV, under Article 19 (1) (a) of the Constitution for their refusal to toe the line of the ruling party with a view to muffling and gagging the freedom of the media," the petition added.

The petitioners contended that Margadarsi would not fall under the `financial establishment' defined under A. P. Protection of Depositors of Financial Establishments Act, 1999.

(The Government had invoked this Act while appointing its Adviser, Finance, N. Rangachari to look into Margadarsi's affairs).

The petitioners said Mr. Rangachari issued a notice on December 23 seeking information within ten days.