Date:07/03/2007 URL: http://www.thehindu.com/2007/03/07/stories/2007030719341700.htm

National

Margadarsi seeks court's intervention

N. Rahul

HYDERABAD: Margadarsi Financiers has sought the intervention of a sessions court here to make the Andhra Pradesh Government return the voluminous records seized from its head office a few days ago as the purpose of search by the Government that led to the seizure was served.

The records, including original application forms and deposit receipts, were essential to make payments to depositors. The Government could retain photocopies, senior counsel for Margadarsi Financiers, C. Padmanabha Reddy, informed the court of the First Additional Metropolitan Sessions Judge, S. Anantasayana Prasad. The hearing of the revision petition filed by the firm seeking stay of the search by the Crime Investigation Department (CID) of the police resumed on Tuesday.

Mr. Reddy said there was nothing left in the office to do business, except cupboards.

Counsel made a spirited argument to counter the plea of the Government that the revision petition was not `maintainable.' He argued that the case was indeed maintainable because any verdict by court will put an end to the dispute. The judgment will wipe out the proceedings before the First Additional Chief Metropolitan Magistrate, Y.H. Prameela Reddy, who issued the search warrant. He said there was no other case, First Information Report (FIR) of the police or inquiry pending before her to drag on the litigation.

There will be nothing left to be dealt by the magistrate's court if the petition was either allowed or dismissed, Mr. Reddy said adding that the petition was also maintainable as the rights of Margadarsi Financiers to carry on its business were affected substantially. He contended that the search warrant was illegal as it was issued contrary to Sec. 45 S of the Reserve Bank of India (RBI) Act that permitted a Hindu Undivided Family to accept deposits.

The Special Public Prosecutor, S. Satyanarayana Prasad, said the warrant should be sustained as proceedings under provisions of the Criminal Procedure Code to scrutinise the documents were yet to be launched. He said the Government was not coming in the way of repayments. The firm could apply to the court for release of specific documents with an undertaking to return them later.

The judge reserved orders on the petition to March 14. The hearing on both sides completed on Tuesday.