Cuttack: In a significant ruling, the Orissa High Court has directed the competent authority to return the money to investors duped by chit fund companies on a first come, first serve basis.
A single bench comprising Justice Biswanath Rath passed the order on March 29 while hearing a petition by chit fund company GLP Developers Ltd and others.
In their pleas, GLP Developers Ltd and others said that while they were willing to return the money to investors, they were facing hurdles from officials, and threats and assaults from depositors.
M Kanungo, who appeared for the ponzi companies, argued that despite the HC order of April 28, 2017 to return the money of depositors, state authorities were creating hurdles and delaying matters.
The HC observed that the competent authority has already kept a sum of Rs 48,16,49,527 for this.
“It is unfortunate to note that even after not finding any order of attachment through the CBI proceeding, instead of attempting to get concrete information on the claim of the banks and taking steps as appropriate, the state authorities have proceeded for recovery proceeding under the OPDR Act in an attempt possibly to wash their hands,” the court said.
The court observed, “The approach of the Competent Authority is not appearing to be genuine and on the other hand this Court finds, there is dilly dally tactics.”
“It is, at this stage of the matter, this Court directs the competent authority in the scrutiny of the application of the valid and identified depositors, to make an attempt to release the amount maintaining first come first release basis,” the court ordered.
The next hearing is on April 29, 2022.
