Auction of ponzi properties: Odisha govt issues guidelines

Bhubaneswar: The Odisha government has issued guidelines to expedite the auctioning process of properties belonging to chit fund companies which have duped thousands of crores of rupees from gullible investors.

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.

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.”

Official sources said soon the state government will sign an agreement with central PSU MSTC for e-auction of the properties.

Once the designated courts pass property confiscation order, the additional district magistrates (ADMs) will advertise the auction date in 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 Ltd. for which the competent authority concerned may enter into an agreement with MSTC India Ltd.,” the notification further said.

In May, the state government described people duped of Rs 10,000 or less as small investors and said they would be given priority in getting refunds from the Rs 300-crore corpus fund as well as the money raised from the sale of attached properties of ponzi firms.