Supreme Court Relief for Margadarsi: Supreme Court Relief for Margadarsi Financiers

Supreme Court Relief for Margadarsi: The Supreme Court has given relief to Margadarsi Financiers by dismissing a petition filed by former MP Undavalli Arun Kumar over the company’s deposit-related case.

A bench comprising Justice M M Sundresh and Justice Prasanna B Varale heard the matter. Undavalli had challenged the Telangana High Court’s decision to quash the FIR registered against Margadarsi Financiers.

During the hearing, Undavalli’s counsel argued that the company had allegedly collected around Rs 2,500 crore in deposits without the required permissions and in violation of Reserve Bank of India regulations. The counsel also questioned the High Court’s reasoning and sought further investigation into the matter.

The petition also referred to an amount of more than Rs 5.23 crore that remained unclaimed by some depositors. The argument was that the pending amount warranted a detailed examination of the case.

Appearing for Margadarsi Financiers, senior advocate Siddharth Luthra told the court that around Rs 2,500 crore had already been returned to depositors. He said the remaining unclaimed amount of Rs 5.23 crore had been deposited into an escrow account in accordance with the applicable procedure.

The company’s counsel further submitted that the Telangana High Court had followed the directions previously issued by the Supreme Court. Public notices were issued and the subsequent process was carried out according to the prescribed procedure, the court was told.

The Supreme Court questioned Undavalli’s standing in pursuing the matter and observed that the dispute appeared to be personal rather than one involving a clear public interest issue. The bench also made observations about the manner in which the petition was being pursued.

After considering the arguments from both sides, the Supreme Court upheld the Telangana High Court’s decision and dismissed Undavalli Arun Kumar’s petition.