SC Dismisses Ex-MP Vundavalli’s Plea Against Margadarsi Financiers
Senior counsel Siddartha Luthra appearing for Margadarsi Financiers submitted that nearly Rs 2,591 crore had been refunded to the depositors and an amount of Rs 5.23 crore was secured in an escrow account for any depositor who may, in future, come forward seeking payment
Vijayawada: The Supreme Court has dismissed a Special Leave Petition filed by former MP Vundavalli Aruna Kumar challenging the Telangana high court’s order setting aside the criminal proceedings against Margadarsi Financiers.
A two-judge bench of Justice MM Sundresh and Justice Prasanna Varale dismissed the SLP in the apex court on
Thursday.
Senior counsel Siddartha Luthra appearing for Margadarsi Financiers submitted that nearly Rs 2,591 crore had been refunded to the depositors and an amount of Rs 5.23 crore was secured in an escrow account for any depositor who may, in future, come forward seeking payment.
The Margadarsi Financiers earlier approached the Telangana high court seeking a declaration that the criminal proceedings initiated against it in 2008 had become infructuous after the repayment of the entire amount to the depositors. It also cited the death of its former chairman in June, 2024 and contended that the remaining members of the Hindu Undivided Family could not be made the accused.
The case had its origin in a complaint filed by the Andhra Pradesh government in 2008, alleging that Margadarsi Financiers had flouted the provisions of RBI Act by accepting deposits from the general public despite it being a Hindu Undivided Family.
The high court quashed the proceedings in 2018. However, Vundavalli Aruna Kumar appealed in the Supreme Court which, in turn, referred the matter to the Telangana high court in April, 2024. The SC directed the high court to invite claims and objections from investors and depositors before finalising whether continuation of the criminal proceedings would serve the administration of criminal justice.
With no depositor coming forward and also all the deposits being repaid to the depositors, the high court considered the citation of death of the former chairman and dismissed the criminal proceedings against the firm.
With this, former MP Vundavalli Aruna Kumar filed an SLP in the apex court.
