Andhra Pradesh   

Court declines to stay G.O.s on Margadarsi

Legal Correspondent

Petitioners' contention the issue is linked to freedom of the press was also rejected

HYDERABAD: A Division Bench of the Andhra Pradesh High Court on Thursday declined to stay the operation of the two orders issued by the State Government appointing N. Rangachari and Krishna Raju to look into the affairs of Margadarsi Financiers.

The Bench admitted the writ petition filed by Margadarsi Financiers and others challenging the constitutional validity of the action of the State Government in issuing the orders. It, however, made it clear that the writ is not being admitted against Chief Minister Y.S. Rajasekhara Reddy at this stage. The petitioner alleged the two Government Orders (GOs) were issued due to the Chief Minister's malafide intention.

The bench delivered 20-page order besides dismissing the miscellaneous petition seeking stay of the operation of the two GOs. The Bench was not inclined to accept the contention of the petitioners that a probe by Mr. Rangachari would cause prejudice.

The petitioners' contention that the issue was linked to freedom of the press did not convince the court. The division bench said the collection of deposits by Margadarsi Financiers had nothing to do with the newspaper or television channel. The argument of the petitioners that the Chief Minister expressed anguish over the stories that were reported in Eenadu and ETV was a ground to link the Chief Minister and the impugned GOs was also not accepted by the court.

The Bench said it could not be said that the GOs were the product of alleged malafide, bias or ill will and it refused to entertain the request for an interim stay made by the petitioners in the name of public interest.

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