Margadarsi advised not to accept any fresh deposits

New Delhi, Dec 19 (UNI) The RBI has advised Margadarsi Financiers, a Hyderabad-based Hindu Undivided Family firm not to accept any fresh deposits or renew matured deposits but pay the matured deposits their money as and when they mature, Rajya Sabha was informed today.

Answering Mr Girish Kumar Sanghi, Minister of State for Finance S S Palanimanickam in his written reply said there were complaints against this firm alleging that the HUF had raised huge sums of deposits from the public and had reported accumulated losses while engaging in business of non-banking financial activities. It was alleged that it had infringed section 45S of RBI Act 1934 which prohibited partnership firms or any incorporated body of individuals from accepting any deposits from public unless it is from relatives.

He said the HUF had agreed to deposit equivalent amount of unclaimed deposits in Escrow account on the due date and utilise the disinvestment proceeds to meet the depositors' liability which are consistent with the RBI's advice, the minister said.

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