Chitgate: Designated courts to function soon

Bhubaneswar: In its attempt to expedite the trial related to the multi-crore chit fund scam in Odisha, the state government on Wednesday said that four additional district judges (ADJs) have been appointed as the designated courts for the purpose.

Additional Chief Secretary (Finance) U N Behera said the ADJ courts in Balasore, Berhampur, Cuttack and Sambalpur have been designated to deal with cases relating to chitfunds.

Informing this to media persons, Behera said, “The newly enacted law has been implemented in the state and we have appointed judges in the designated courts."

The properties of the ponzi scheme companies would be attached under the provisions of Odisha Protection of Interest of Depositors (in Financial Establishments) Act, 2011.
Replying to queries on attachment and sale of the properties of fly-by-night companies, he said, “Besides, Additional District Magistrates (ADMs) of these four places have also been declared as the competent authorities to deal with the attachment of property (of non-banking financial companies) and their distribution.”
The official further stated that under the newly enacted Odisha Protection of Interest of Depositors (in Financial Establishments) Act, 2011, the decision regarding attachment of properties and their distribution will be taken in these designated courts.
“ADMs to implement attachment and sale of the properties,” stated Behera.
As per the Act, the competent authority will seek the designated court’s permission and take custody of the seizure following which the latter will hold a hearing to decide the auction as well as reimbursement process. Thereafter, it will chalk out a list of the investors eligible for repayment.
Notably, less than a week ago, the Economic Offences Wing (EOW) of the Crime Branch (CB) of Odisha Police had seized 1.385 kg gold and one quintal silver worth Rs 90 lakhs from the locker of the chairman and managing director of Seashore Group.