The Andhra Pradesh Crime Investigation Department (CID) has registered an FIR against Jagajjanani Chit Fund Private Limited (JCFPL), Rajamahendravaram, under various sections of the IPC, the Andhra Pradesh Protection of Depositors in Financial Establishments Act, 1999, and the Chit Funds Act, 1982.
Company foreman Adireddy Appa Rao and director Adireddy Srinivas were arrested by the police.
In a release on April 30 (Sunday), CID Additional Director General of Police N. Sanjay said the case was booked based on the written complaint filed by the Assistant Registrar of Chits in Kakinada.
He said several irregularities were found upon examination of witness accounts and documents secured from the departments concerned. The irregularities found included non-payment of subscription amount into the chit account, false declaration of facts in the minutes of auction proceedings submitted to the Assistant Registrar of Chits, circulation of subscription amount and doing illegal money lending business, collection of deposits with payment of interest against the guidelines issued by Reserve Bank of India, the official said.
He said further probe into the account books of the company was necessary. The accused were produced before the court, which sent them to judicial remand.
Adireddy Appa Rao is a former TDP MLC, while Adireddy Srinivas is TDP State secretary and husband of TDP Rajamahendravaram City MLA Adireddy Bhavani.
In an official release, the TDP Rajamahendravaram unit leaders said that the CID team arrested Appa Rao and Srinivas at around 6.30 a.m. from their residence. From there, they were taken to the office of the CID in Rajamahendravaram for further investigation.
