The Supreme Court quashed the petition of Margadarsi Management seeking extension of stay on the criminal proceedings.
Way back in 2006, Congress MP Undavalli Arun Kumar wrote a letter to then President accusing Ramoji Rao of collecting Rs 2,600 crore from depositors illegally. Then, Congress Government appointed a One-Man Commission to probe the allegations. Margadarsi Group obtained a stay order on the criminal proceedings.
In its recent ruling, The Supreme Court made it clear stay on proceedings in civil & criminal cases can't exceed 6 months unless if it's a special case. When Margadarsi Group sought an extension, Top Court turned down the petition seeking stay. Notices were served to Undavalli and State Government seeking their response on this matter.
Undavalli Arun Kumar told criminal proceedings would continue even if Margadarsi returns the deposits. 'For the fraud committed by him, Ramoji Rao will have to pay 2-times penalty and serve 2 years jail sentence,' he opined.