The APCID officials on Monday questioned Eenadu and Margadarsi chairman Ch Ramoji Rao in connection with Margadarsi Chit Fund Private Limited. Ramoji Rao was booked along with his daughter-in-law Sailaja Kiran besides six employees of the Margadarsi Chit Fund Company.

They are accused in the mismanagement of funds in the chit fund company. They were also accused of diverting money from the chit fund company to various other business activities. The public deposits collected from the people were used for non-chit fund activities, the CID said.

Ramoji Rao reported sick and was shifted to his son’s house in Banjara Hills where he was questioned by the CID officials. The CID officials have served notices to Ramoji Rao and his daughter-in-law Sailaja Kiran giving them three dates for their convenience.

CID SP Amit Bardar and other officials questioned Ramoji Rao while he was on the sick bed. The CID legal counsel and other officials were present during the questioning. “We have questioned Ramoji Rao in one case and registered his statement. We will question him once again,” the CID SP told media persons.

The officials have questioned Ramoji Rao for over eight hours on the day. They have reportedly collected crucial information from Ramoji Rao’s disposal, sources said. The officials alleged that the Margadarsi had diverted the funds and invested in mutual funds and share market.

The diversion of the funds was in violation of the Reserve Bank of India rules, the officials said. The officials have so far arrested four managers of the Margadarsi group.