Court orders auction of Safex properties

Cuttack: In a major respite to chit fund investors, a special designated court here today asked the State government to sale the attached properties of Safex Infra India Ltd through public auction and distribute the sale proceeds among the investors equitably.

The court ordered ex-parte as the company authorities did not turn up in the court in spite of repeated reminders.

The order, under the Odisha Protection of Interests of Depositors (in Financial Establishments) (OPID) Act, 2011, has paved way for disposal of the company’s 12 acre of land in Ganjam district which was confiscated by Economic Offences Wing (EOW) of the Crime Branch in October 2013.

Officials said the company was allegedly active in illegal money circulation schemes with monthly turnover of nearly Rs 1 crore and land allotment schemes in several districts, including Ganjam.

Earlier, the CBI had frozen the company’s bank account with deposits worth Rs 5 lakh, sources said.

This is the second relief for investors after chit fund firm Rose Valley’s properties were directed by a special court here in February this year to be auctioned.

The EOW had confiscated the property and deposits of Rose Valley group last year, of which Rs 51.17 crore were in the shape of bank deposits, Rs 47 lakh in cash and the rest in the form of land, building and other assets.