Assets of chit fund company to be auctioned in public

A special court here dealing with chit fund-related cases today ordered Odisha government to sell through public auction the attached properties of a company and to distribute the sale proceeds equitably among the small investors in the firm.
The designated court of P K Sasmal ordered the Cuttack ADM to confiscate the properties of M/s GLP Developers Ltd worth Rs 87.48 crore after upholding the order of attachment passed by the state government earlier this year. Cuttack ADM B B Das is the applicant-petitioner and competent government authority in the case.
This court had also passed similar orders earlier in M/s Rose Valley and M/s Astha International cases giving a ray of hope to investors in chit fund companies to get back their invested money. The cases were decided ex-parte as company authorities did not appear in courts despite repeated summons, said Special Public Prosecutor (SPP) Subrat Mohanty.

As competent authority, the Cuttack ADM had filed the application for confiscation of the Company's properties after the state Finance department ordered attachment of the said properties under Section 3 of Odisha Protection of Interests of Depositors (in Financial Establishment) Act of 2011.
The Economic Offence Wing (EOW) of state police had seized the properties of M/s GLP Developers Ltd which include 75 decimals of land and buildings on it worth over Rs 3 crore, several bank accounts having deposits of over Rs 80 crore and hard cash of nearly Rs 50 lakh from many branches of the company.