Margadarsi Financiers – in more trouble – RBI support for prosecution?

By Vijay Kumar

Remember our Margadarsi story?Margadarsi Financiers owned by media baron Ramoji Rao is said to have collected over 3000 Crores of rupees of public money and lost most of it. The State Government had issued two orders recently appointing N. Rangachary to inquire into the issue and authorized an IPS officer to file complaints in the competent courts. Ramoji Rao and Margadarsi challenged these government orders in the High Court and prayed for suspending the operation of the two government orders. The High Court dismissed the stay petitions and last week they had approached the Supreme Court with the plea

1. the real motive was to destabilize RamojiRao’s mass daily Ee Nadu and the dozen TV channels that he runs

2. During the last 34 years, there was not a single instance of default (This is his favorite argument everywhere) nor was there any complaint from any depositor

3. It is an indirect attack on the freedom of the press

In the mean time Mr. Rangachary has asked Margadarsi to furnish relevant papers.

Sources in AP’s mantralaya inform that the State Government is closing in. And they got a boost from RBI. RBI chief general manager, P. Krishnamurthy is reported to have written to the State’s Special Chief Secretary that the State can go ahead with prosecuting the group under the RBI Act and the RBI has also promised to provide a resource person to assist the state government. It seems RBI has no documents pertaining to Margadarsi.

It is really a tight rope walk for the state government because as of now the most important goal is to protect the interests of the depositors, though attacking Ramoji is a politically advantageous move.

Addressing a round table yesterday, Indian Journalists Union President Suresh Akhouri - referring to the issue - said the media barons should not be allowed to flout the law of the land.