RBI Insists on Continuing Probe in Margadarsi Case

The Reserve Bank of India (RBI) has asserted that the investigation into Margadarsi must continue. The Telangana High Court conducted a hearing yesterday on a petition filed by Margadarsi seeking the dismissal of a case originally registered during the tenure of the erstwhile united Andhra Pradesh government. The bench, comprising Justice Shyam Koushik and Justice Sujana, heard the petition.

During the proceedings, senior advocate L. Ravichander, representing the RBI, argued that Margadarsi had collected deposits from the public in violation of Section 45(S) of the Reserve Bank of India Act. He contended that the company must face legal proceedings regardless of the circumstances. He further stated that despite the passing of Ramoji Rao, the case should proceed. If any wrongdoing is established, he emphasized that Margadarsi must face penalties under Section 58(B) of the RBI Act.

On behalf of Margadarsi, senior Supreme Court advocate Siddharth Luthra argued that Ramoji Rao was solely responsible for all aspects of the case and, given his demise, there was no basis for further proceedings against anyone else. Legal representatives for the Andhra Pradesh and Telangana governments contended that pursuing the case after Ramoji Rao’s passing would serve no practical purpose and would merely result in a waste of time.

After hearing the arguments, the bench adjourned the case to March 7 for a full-fledged hearing of the arguments presented by former Member of Parliament Undavalli Arun Kumar, who had originally filed the petition.