Odisha designates 4 ADJs to deal with chit-fund cases

In a bid to expedite the process of attaching properties of ponzi scheme companies, Odisha government said four ADJs have been appointed as designated courts for the purpose.

PTI| Updated: Nov 06, 2013, 23:06 PM IST

Bhubaneswar: In a bid to expedite the process of attaching properties of ponzi scheme companies which allegedly duped lakhs of investors in the state, Odisha government on Wednesday said 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 has been designated to deal with cases relating to chit-funds.

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.

"The newly enacted law has been implemented in the state and we have appointed judges in the designated courts. Additional District Magistrates (ADMs) of these four districts have also been declared as the competent authorities to deal with the attachment of property of the companies involved in the Chitgate," Behera said.

The ADMs have been entrusted to deal with the attachment and sale of the properties. 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 on the auction as well as reimbursement process. Thereafter, it will chalk out a list of investors eligible for repayment, said sources.

A high level meeting chaired by chief secretary J K Mohapatra held during the day decided to expedite the process to get the designated courts functional. "The properties of the chit fund companies will be attached as soon as possible," he said.

Meanwhile, the Crime Branch of Police have arrested a number of people including CMDs of some ponzi companies allegedly involved in loot of the innocent investors.