SC to hear on July 18 A.P.'s transfer plea of Margadarsi Chit case petitions

The Supreme Court on Tuesday listed for July 18 a petition filed by the State of Andhra Pradesh seeking a transfer of writ petitions concerning irregularities alleged against Margadarsi Chit Funds Private Limited (MCFPL) from the Telangana High Court to the Andhra Pradesh High Court.

The Supreme Court on Tuesday listed for July 18 a petition filed by the State of Andhra Pradesh seeking a transfer of writ petitions concerning irregularities alleged against Margadarsi Chit Funds Private Limited (MCFPL) from the Telangana High Court to the Andhra Pradesh High Court.

A Vacation Bench of Justices Aniruddha Bose and Rajesh Bindal issued notice and posted the case for July 18 for considering the question of granting any interim relief to the State.

Andhra Pradesh, represented by senior advocate Neeraj Kishan Kaul and advocate Mahfooz Ahsan Nazki, said the case concerns offences and violations under the Chit Funds Act, the Andhra Pradesh Protection of Depositors in Financial Establishment Act and the Indian Penal Code allegedly “committed by the MCFPL and its management and affiliates in Andhra Pradesh”.

Senior advocate Harish Salve, for the MCFPL and other respondents, said the case was politically motivated.

The State said the Telangana High Court had passed orders protecting the MCFPL from coercive action despite its lack of jurisdiction in the case.

“All the FIRs were registered in the State of Andhra Pradesh for offences committed exclusively/primarily in the State, and they are being investigated by the Andhra Pradesh police… The largest number of subscribers to the chit funds of the MCFPL are located in Andhra Pradesh, and the majority of the branch offices are located in the State. Therefore, the cause of action arises in Andhra Pradesh and only the State High Court will have jurisdiction over these matters,” the petition contended.

The petition argued that every branch office/foreman under the MCFPL is deemed to be an independent office under the Chit Funds Act, and is subject to the jurisdiction of the local Registrar of Chits in the district concerned.