Court orders auction of properties of two chit fund companies

Cuttack: The Special Chit Fund Court, Cuttack today directed the Additional District Magistrate (ADM), Cuttack, the Special Empowered Authority, to auction the properties of the Sai Pragati Assets and Properties Pvt Ltd and S Virgin Worldwide Concept Ltd

“In his order, Special Chit Fund Court Judge SK Mohapatra directed the Cuttack ADM to confiscate Rs 2,77,74,893 belonging to the two chit fund companies deposited in various banks and auction 47.37 acres of land in Khurda, Pipili and Puri and distribute the proceeds from the auction among the duped investors,” Special Public Prosecutor Subrat Mohanty told media persons here.

Notably, the Economic Offences Wing (EOW) of the State Crime Branch had registered a case against Sai Pragati Assets and Properties and S Virgin Worldwide Concept Ltd on May 10, 2012 following complaints by the investors. Both the companies had collected huge amounts from the depositors with a promise of attractive returns.

In course of its investigation, the EOW had found huge cash deposits by these two companies in their accounts in various banks in the state as well as land in Khurda and Puri districts.

The EOW had later sought permission from the Finance department to confiscate the properties of these two companies which was granted on July 28, 2014.

On the basis of the permission from the Finance department, the Cuttack ADM had prayed to the Special Chit Fund Court for confiscation of the cash and auction the properties of these two companies.