A Special Court here dealing with chit fund-related cases on Wednesday ordered the State Government to sell through public auction the attached properties of GlP Developers ltd and distribute the sale proceeds equitably among the small investors in the company.
The designated court of PK Sasmal ordered the Cuttack ADM to confiscate the properties of the company worth `87.48 crore after upholding the order of attachment passed by the Government earlier this year. Cuttack ADM BB Das is the applicant-petitioner and competent authority in the case.
The Cuttack ADM had filed the application for confiscation of the company’s properties after the State Finance Department ordered attachment of the properties under Section 3 of the Odisha Protection of Interests of Depositors (in Financial Establishment) Act, 2011.
The Economic Offences Wing (EOW) of the State police had seized the properties of GlP Developers which include 75 decimals of land and buildings on it worth over `3 crore, several bank accounts having deposits of over `80 crore and hard cash of nearly `50 lakh from many branches of the company. This court had also passed similar orders earlier in Rose Valley and Astha International cases giving a ray of hope to investors in chit fund companies to get back their money. The cases were decided ex-parte as the companies’ authorities did not appear in courts despite repeated summons, said Special Public Prosecutor (SPP) Subrat Mohanty.