Former Rajahmundry MP Vundavalli Arun Kumar remains relentless in his legal battle against Margadarsi Financiers, even after the death of its founder and media baron Ch. Ramoji Rao.
He appears determined to hold Ramoji’s successors accountable, either by sending them to jail or making them pay heavy penalties for violating Reserve Bank of India (RBI) guidelines.
In an affidavit submitted to the Telangana High Court on Friday, Vundavalli argued that the illegal deposit collections by Margadarsi Financiers and its Hindu Undivided Family (HUF) cannot be excused simply because Ramoji Rao has passed away.
He pointed out that the previous Andhra Pradesh government had filed a Special Leave Petition (SLP) in the Supreme Court to investigate Margadarsi’s illegal activities.
However, he alleged that the current state governments in Andhra Pradesh and Telangana are attempting to shield the financial institution.
Vundavalli urged the court to include the RBI as a respondent in the case, emphasizing that the legality of Margadarsi’s deposit collections must be determined.
He reminded the bench that the Supreme Court had previously declared Margadarsi an illegal entity and that the RBI had confirmed its deposit collections were unlawful.
He warned that failing to take strict action now would set a dangerous precedent for the future.
The former MP asserted that Margadarsi’s HUF members must be held responsible for Ramoji Rao’s financial irregularities.
He dismissed the affidavit submitted by Margadarsi on January 28, which claimed that only Ramoji Rao was responsible and that his family members had no involvement.
A division bench of the Telangana High Court, consisting of Justices Vishwajit Koshy and Kalasikam Sujana, has reserved its judgment on the matter.
Vundavalli further argued that Margadarsi Financiers operated without approvals from the RBI, central government, or state governments, collecting deposits at will.
He claimed that victims hesitated to file complaints against Ramoji Rao due to his immense influence and media empire. Even when complaints were filed, he alleged that police refused to register cases against him.
Even after Ramoji Rao’s demise, Vundavalli insisted that those who benefited from his financial misconduct remain accountable.
“If a father takes a bank loan and passes away, the liability still falls on his family members,” he argued.
He warned that if the government fails to act, it would encourage more illegal financiers, posing a significant threat to the nation’s financial stability.