Chit Fund Scam: Special Court In Cuttack Directs To Return Deposits Of Small Investors

Cuttack: A special court in Odisha’s Cuttack has directed the authorities to return the money of small investors cheated by two chit fund companies.

The two chit fund companies, Golden Land Developers and GLP Developers, had mobilised hundreds of crore rupees from the people by promising heavy returns. As the companies failed to pay the return or the invested amount, the investors had approached the Orissa High Court.

The High Court had directed the officer-in-charge and Cuttack ADM to identify the duped investors and return the money to them after auctioning the seized properties of the companies.

The ADM informed the court that total 4,76,102 investors had appealed for return of their saving amount. Their claim amounted total Rs 479,5,43,274. Of the investors, 2,59,280 were small investors who had deposited less than Rs 8,000 in the companies.

The court was also informed that the auction of the properties of the two companies had fetched Rs 88,81,78,110 which was deposited in the bank. The amount including interest has gone up to Rs 102,17,75,690.

The special court directed the ADM to return the deposited money of the small investors amounting to Rs 92,58,78,201.