A designated ADJ Court here dealing exclusively on cases pertaining to chit fund companies on Wednesdayordered for sale through public auction of seized assets of the Sri Bhumi Group of Companies. The court also directed the competent authority to distribute the realised money equitably among the poor investors of the Company.
This is the eighth such order passed by the special court during last two years in which, the court has ordered for public auction of seized properties of eight tainted companies that collected money from public luring them with promise to high interest. At least two dozen more such cases are now pending disposal in the same court.
Reports said the Company headquartered in Bhubaneswar, collected more than Rs 5 crore from public by opening branch offices in Angul, Rourkela, Baleswar and Jaleswar of the State. At least 550 investors in the Company have so far complained of cheating and the number is still counting.
On the basis of cases registered by the economic offence wing (EOW) of State crime branch, police have arrested Subhransu Singh, one of the directors of the company. The other director Chaturanan Majhi is still absconding. Police have also seized documents of at least 64 acres of land belonging to the company and cash over Rs 3 lakh.
Soon after filing of charge sheet against Singh, the State Government in July 2015 had issued ad-interim order to attach the properties of the Company. Accordingly, the Cuttack ADM, who has been appointed as the competent authority in these matters, approached the designated court seeking permission for public auction of the attached properties.