In a first-of-its-kind move to bring cheers to the chit fund investors, the Cuttack district administration here has realised over Rs47 crore from the Rose Valley Group and is in the process of auctioning the company’s properties so as to distribute the sale proceeds among the investors equitably.
“We have already brought the seized amounts of the company to our accounts and are in the process of auctioning the company’s 17 acres of land and the building on it after fixing the upset price of the property,” said Cuttack ADM BB Das on Saturday. He said the realised amount, which is likely to touch about Rs65 crore, would be distributed equitably among the investors after ascertaining their identifications.
A designated court of Additional District Judge (ADJ) here on February 25 this year had in an ad-interim order directed the Cuttack ADM to sell through public auction the attached properties of the company and distribute the money among the investors, who were cheated by the chit fund company.
Soon after the court order, the district administration took action to confiscate the properties of the company since the court held that the order of attachment passed by the State Government in July last year as “absolute”. The court had passed the order ex-parte because the company authorities did not turn up despite repeated reminders.
It may be mentioned that the Economic Offences Wing (EOW) of the State police had seized the properties of the company that include a patch of 17 acres of land and buildings on it worth over Rs 11 crore, 32 bank accounts having deposits of over Rs 51 crore and cash of Rs 47 lakh from around 65 branches of the company spread across the State.