Congress MP wants RBI to take action on Margadarsi financiers

Hyderabad, Aug 2 (UNI) Senior Congress MP Vundavalli Aruna Kumar today alleged that the Margadarsi Financiers was still accepting deposits in violation of Reserve Bank of India (RBI) Act and wanted to know why the firm was not prosecuted yet.

In a letter to RBI Governor Y V Reddy, a copy of which was released to media here, he said that the firm, by claiming that the RBI had agreed to its proposal, was collecting deposits and enclosed a copy of the printed version of the firm's website updated on July 31, 2007.

Seeking an appointment with the Governor to explain various aspects relating to the issue, the Congress leader, who had brought to light the firm raising depoists from the public allegedly in violation of the RBI (Amended) Act 1997, also claimed that certain banks had provided funds to group companies of the firm allegedly in violation of the banking norms.

He asked under which provision the firm was given time to repay the depositors when only the RBI, in repsect of violating Un-Incorporated Bodies, could prosecute them.

The action taken against 40 Urban Coopertive Banks, all of which were legitimate businesses duly licenced by the RBI, by bringing the Directors of those banks to the knees and the speed with which got the Management of Global Trust Bank was changed, was clearly missing in this case, he alleged.

UNI