Odisha court directs auction of Chit Fund Firm Properties

Bhubaneswar, May 18 (IANS): A court in Odisha on Monday directed the state government to sell the attached properties of chit fund firm Safex Infra India through public auction and distribute the sale proceeds among the depositors equitably.

The court in Cuttack asked the concerned officials of the state government to confiscate and sell the seized properties of the chit fund company.

In its order, the court told the government to confiscate about 14 acres of land and bank deposits over Rs.5 lakh and distribute them among the depositors.

The company was operating from Berhampur in Ganjam district.

The Economic Offences Wing (EOW) of the Crime Branch in January this year sought permission from the finance department for liquidation of the assets of Safex Infra for refund of money to duped investors as per the provisions of the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011.

The Crime Branch raided offices of the chit fund company in Berhampur, Chhatrapur and Bhubaneswar in 2012 following allegations by depositors that the firm had cheated them of around Rs.10 crore on the promise of high returns.

Police then arrested six company officials for allegedly cheating people in the state.