In order to expedite the auctioning process of properties of chit fund companies thereby facilitating early refund of deposits to the gullible investors, the State Government has issued guidelines asking the district Collectors to fix the upset prices of attached assets at the earliest.
The guideline said, “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 Finance Department has issued a notification in this regard directing the district Collectors to fix the upset prices of the attached properties of the companies.
Official sources said the State Government would sign an agreement with Central PSU MSTC for e-auction of the properties.
As per the guidelines, once the designated courts pass property confiscation order, the Additional District Magistrates (ADMs) would advertise the auction date in national and regional newspapers and websites, seeking applications for the refund of deposits.
“The auction of the attached properties may be conducted through e-auction on the website of MSTC India limited for which the competent authority may enter into an agreement with MSTC India,” the notification further said.