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Remedial steps taken voluntarily: Ramoji Rao

Special Correspondent

HYDERABAD: The Chairman of the Eenadu-Margadarsi group, Ch. Ramoji Rao issued a statement on Saturday, outlining the steps voluntarily initiated by the company in the light of the `false propaganda' being carried out against Margadarsi Financiers.

He said the steps included stoppage of collection of deposits of less than Rs. 1 lakh from September 16, much before a controversy was raised on the issue. This was followed by the decision not to accept any type of deposit from November 20 and stoppage of renewal of matured deposits from the same day, the statement said.

In addition, the group was crediting the matured deposits that were not claimed by the depositors in an escrow account so that the money could be paid back whenever the depositors asked for it. The decisions, which were part of the group's efforts to ensure that the depositors were not subject to any mental tensions, were communicated to the RBI on November 29. Mr. Rao emphasised that the group had not received any directives from the RBI and that the steps had been initiated voluntarily. It was unfortunate that efforts were being made to create unnecessary confusion among depositors by distorting the truth.

The group was committed to repaying the deposits along with interest in time and retaining the depositors' confidence.

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