Odisha Govt issues guidelines for auctioning chit fund prop

In its bid to expedite the process of returning investors' money, the Odisha government today issued guidelines for auctioning properties belonging to chit fund companies.
The chitfund companies allegedly duped thousands of crores of rupees from gullible investors and the finance department in its notification today directed the district collectors to fix the upset prices of the attached properties of chit fund companies.
"To avoid inordinate delay, collectors can also fix upset prices of assets of those companies whose confiscation orders are likely to be granted by designated courts within six months," the guidelines said.
The state government issued the guidelines following signing of an agreement with central PSU MSTC for e-auction of the properties.

Once the designated courts pass property confiscation order, the additional district magistrates (ADMs) would advertise the auction date in newspapers and websites, seeking applications for the refund of deposits, it said.
"The auction of the attached properties may be conducted through e-auction on the website of MSTC India Ltd for which the competent authority concerned may enter into an agreement with MSTC India Ltd," the notification said.
Meanwhile, the state government decided that the small investors who lost Rs 10,000 or less to Ponzi companies, would get priority in the refund process, departmental officials said.