SC okays proceedings against Ramoji Rao

SC okays proceedings against Ramoji Rao The Supreme Court directed a trial court in Andhra Pradesh to go ahead with criminal proceedings against Media Baron Ramoji Rao, who had allegedly collected Rs 2,610 crore from public by setting up a chit fund in violation of the RBI rules. A bench headed by Chief Justice K G Balakrishnan while disposing off the petition filed by Andhra Pradesh government directed the trial court to continue with the criminal complaint. It further said the observations made by the Andhra Pradesh High Court or apex court will not come in way of the proceedings before the first additional metropolitan magistrate, Hyderabad. Senior counsel T R Andhyarijuna and S S Prasad, appearing for the state, submitted before the bench that the magistrate had refused to proceed with the complaint on the ground that the matter was pending before the apex court. Senior Counsel Nageshawara Rao, appearing for Margadarsi Financers, contended that there was a delay on the part of the petitioners in moving apex court. The state government had challenged the order of the High Court which had upheld the trial court decision stalling the proceedings saying that the matter was pending before the Apex Court. Rao had floated the chit fund company and collected Rs 2,610 crore from the investors in violations of the provisions of the RBI. If held guilty, Rao could be imprisoned for two years and asked to pay a fine equal to double the amount collected from the investors according to the provisions of the RBI Act. Earlier, the petitions filed by Margadarsi Financiers, Ramoji Rao and Ushodaya Enterprises had challenged the two government orders appointing N Rangachari, adviser to government, and Krishnam Raju, CID inspector-general, to probe the affairs of the finance company. The special leave petitions had alleged that the government orders issued on 19th December, 2006, showed malafide intentions on the part of state Chief Minister Y S Rajasekhara Reddy. They were passed to financially destabilise the media enterprise from running the daily 'Eenadu' and 12 television channels, they stated. They also said the government order to make operational the APPDF was passed with an ulterior motive to financially destabilise the media enterprises run by Ramo Rao. Earlier, the apex court had directed Margadarsi to furnish details of depositors who had received payments on maturity of their investments and the details of those whose deposits has matured but the money still remained unclaimed so as to enable the Andhra Pradesh government to verify their particulars. It also asked the company to give details about whether the unclaimed amounts have been deposited in the escrow account.

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