SC dismisses Andhra govt's plea against taking over of Margadarsi case by Telangana HC

In a setback for Andhra Pradesh government, the Supreme Court on Friday refused to interfere with Telangana High Court decision which had assumed jurisdiction in Margadarsi case.

A bench comprising Justices JK Maheshwari and KV Vishwanathan dismissed the special leave petition filed by Andhra Pradesh government challenging the interim orders passed by the Telangana High Court holding that it has the judicial jurisdiction to enquire the cases registered by Andhra Pradesh CID police against Margadarsi Chit Fund.

It clarified that the AP government will have to present its final arguments before the Telangana High Court itself.

"We feel that Telangana High Court should enquire these cases on the basis of merit and take a decision," the top court said.

However, the apex court granted liberty to the state government to challenge the jurisdiction issue again before it.

The Supreme Court refused to interfere with orders of the High Court restraining AP government to take action against the Chairman of Margadarsi, Ramoji Rao and M.D. Sailaja Kiran.

“Judicial jurisdiction is the focal point in this case. Therefore, we felt that instead of enquiring the petition, which is filed challenging the interim orders, it is better to dispose it," recorded the apex court in its order.

It said that it will not keep the transfer petition pending and disposed of the other two petitions challenging the interim orders of the High Court.

"If the case is dismissed there (High Court), there will be no questions arising. If permitted, you can approach here and present your arguments about jurisdiction,” it remarked.

The apex court clarified that the issue of jurisdiction is open. "If you get a judgement against in Telangana High Court, you could come here," added.

Senior Advocate Mukul Rohatgi, appearing on behalf of Margadarsi, said that already few charge sheets have been filed in Andhra Pradesh.

At this senior advocate Neeraj Kishan Kaul, representing AP government, said: “Already one early charge sheet is filed. The Trial Court in Andhra Pradesh will look into the charges. Telangana High Court will enquire into. Every accusation mentioned in FIR relates to Andhra Pradesh. In such matters, how can Telangana High Court interfere?"

However, the top court dismissed the petition filed by AP government challenging the interim orders of Telangana High Court finding fault with the appointment of chit auditors.