*No clean chit for Ramoji in Margadarsi case: Ambati*

Tadepalli, August 23, 2026: Former Minister and YSRCP Guntur district president Ambati Rambabu said the Supreme Court did not give Ramoji Rao a clean chit in the Margadarsi illegal deposits case and that the criminal proceedings ended only because of his death. Speaking at the YSRCP central office, he said the dismissal of Undavalli Arun Kumar’s petition cannot be portrayed as a declaration that Margadarsi’s deposit mobilisation was lawful.
Ambati said RBI had questioned Margadarsi’s deposit collection even before Undavalli’s complaint and made it clear that a Hindu Undivided Family could not collect public deposits in violation of Section 45S of the RBI Act. Margadarsi had collected around ₹2,600 crore from depositors, and Ramoji Rao later raised funds by selling media assets to repay depositors. “A criminal case may abate after the death of the individual, but financial liabilities do not disappear,” he said.
He said Section 45S provides for stringent action and penalties, including a fine linked to the amount unlawfully collected, and maintained that civil and financial liabilities can still be pursued. Referring to a recent Parliament reply to YSRCP Parliamentary Party leader Y.V. Subba Reddy, Ambati said the Union Government itself clarified that HUFs cannot mobilise public deposits and that violations invite regulatory action.
Ambati questioned why RBI later informed Undavalli that it would not pursue the matter further despite its earlier stand. He expressed confidence that Undavalli would continue the legal and democratic fight. He also said Chandrababu Naidu had long protected Ramoji Rao in return for his political support to the TDP, including during the revolt against N.T. Rama Rao. “Ramoji Rao was no spotless icon. His financial violations cannot be erased merely because he is no more,” Ambati said.