Guj: Properties to be auctioned to pay victims of investment

The Gujarat government has decided to auction the confiscated properties of firms or individuals who have defrauded investors, so that the victims get their money back.

Minister of State for Home Pradipsinh Jadeja today told reporters that the Criminal Investigation Department (CID-Crime) would be the nodal agency for conducting auctions.

"We have decided to auction properties seized from certain companies, those running Ponzi schemes, and credit societies which have cheated people by promising huge returns, so that victims get their money back," the minister said.

"Such companies operate without proper permissions from the Reserve Bank and promise to double investors' money in a short period. They then disappear with the money," Jadeja said.

In the last two years, the Economic Offences Wing of Gujarat CID investigated 28 such cases in which 4.62 lakh small investors were cheated to the tune of Rs 713 crore, he said.

The agency seized 114 properties in these cases under the Gujarat Protection of Interest of Depositors Act, 2003, the minister said.

"Several credit societies also do not return money to investors. They will also be brought under the GPID Act and their properties will be seized (and auctioned) to return money to the investors," Jadeja said.