SC stays freezing of assets of Ramoji Rao firm

New Delhi, Apr 20 (UNI) In a solace to beleaguered owner of Eenadu TV Ramoji Rao, the Supreme Court today stayed till further orders the freezing of the assets of his M/s Margdarshi Chit Fund.

A bench comprising Chief Justice K G Balakrishnan and Justices P K Balasubramanyan and R V Raveendran stayed the operation of the show cause notice issued by the Andhra Pardesh government under the A P Protection of Depositors Act for freezing the assets of the firm on the basis of Rangachari Committee report which said that liabilities of Margdarshi were more than its assets.

The court granted the relief after Ramoji Rao gave an undertaking that the petitioner firm would deposit on the first of the month when the amount becomes due in the Escrow account and depositors would be paid their dues in time.

The apex court in its order noted that if Margdarshi failed to abide by the undertaking than RBI woud be at liberty to proceed against the pettioner firm in accordance with law.

The show cause notices were issued on March 28,2007.

Ramoji Rao has however been alleging before the court that he was being victimised by the state chief minister Y S Rajashekhar Reddy for exposing corruption in his government in which his family members were the man beneficiaries.

Hindu Editor-in-chief N Ram and former Indian Express Editor Kuldip Nayyar have also filed intervention applications in support of Ramoji Rao alleging that the state government was trying to stifle the voice of the media in the state which is dangerous for democracy.

The apex court had earlier declined the prayer of Ramoji Rao for issuing notices to the state chief minister besides the state government but the court had issued notice only to the government.

Senior counsel Arun Jaitley and Harish Salve contended before the court not even a single depositor or investor has lodged a complaint against the petitioner and it was an attempt on the part of the government to spread panic among investors of Margdarshi which is being targeted to settle scores with its owner who owns Eenadu chain of news papers and E TV network in the state and is a leading media baron.

UNI