RBI directs Co not to accept deposits

New Delhi,Dec 1(UNI)A Hyderabad-based company,Ms Margadarsi Financiers, allegedly engaged illegally in non-banking financial activites in violation of the Section 455 of the RBI Act, has been told by the RBI not to accept any fresh deposits or renew matured deposits.

This was in resonse to the complaints received by the RBI against the HUF that it had raised a huge sum of deposit from the public as on March 2005 and had reported accumulated losses.

The RBI had held discussions with the representative of the unincorporated body following complaints referred to it to ascertain the nature of irregularity and take suitable action,according to an official release.

The Company has since confirmed the RBI that they are not accepting any fresh deposits nor renewing the maturing deposts,the release said,adding the RBI is monitoring the developments and would take action if necessary.

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