Court orders auction of properties of ponzi firm

A special court here, designated to hear cases related to chit fund scam, today ordered public auction of properties of a ponzi scheme firm.
Special Judge P K Patnaik pronounced the order on a plea filed by additional district magistrate (ADM), Ganjam, Saroj Mishra seeking the court's permission to sell the properties of Katloon Management and Financial Services Ltd to ensure refund of money to the duped investors.
Administration had seized over 37 acre land owned by the company in Bhanjanagara area in the district and a luxury car. The landed properties are located in 27 places.
The properties will be auctioned and the sale proceeds will be distributed among investors duped by the company, said special prosecutor Bijay Kumar Pradhan.

Economic Offence Wing of the Crime Branch had registered the case against the company and arrested one of its directors and a promoter, based on the FIR filed by one Rama Krushna Pani of Buguda on July 15, 2015 at Buguda police station. Six other directors of the company including managing director are still at large, sources said.
The company had allegedly purchased the landed properties and luxury vehicles in fraudulent manners by using the depositors' money.