Land Fraud: Odisha Court Orders For Auction Of Rs 2 Crore Assets Of Ponzi Firm

Bhubaneswar: The Odisha Protection of Interests of Depositors (OPID) court in Cuttack has ordered for confiscation of Rs 2 crore assets of chit fund company Surya Nirman Resources Pvt Ltd in a land fraud case.

“ADM-cum-Competent Authority under OPID Act, Cuttack, have also been directed to sell the immovable properties through public auction for equitable distribution of the proceeds among the investors/depositors,” an Economic Offence Wing (EOW) release said on Friday.

The court pronounced its verdict on October 17.

A case was registered against the company, its MD Chinmay Mallick and directors, Rojalin Mallick and Biswajit Pattnaik, on May 29, 2017, for allegedly collecting deposits of more than Rs 2 crore from people promising litigation free plots/land at Chandaka or pay back of the invested amount with high returns through its different money back policy/schemes like ‘Jeevan’ and ‘Jeevan (Gems)’.

The company, however, neither provided the land/plots nor did it return the promised amount with returns to the investors/depositors, and misappropriated the same.

“During the year 2010-15, the directors of Surya Nirman Resources Pvt Ltd floated different plans/schemes and collected deposits from more than 100 persons to the tune of more than Rs 2 crore, without any authority for providing litigation free plots/land at Chandaka. The amount was collected by inducing the general public through distribution of colourful brochures containing different lucrative/attractive schemes, leaflets, apart from personal motivation/inducement by the agents of the company,” the release said.

During investigation, the details of moveable/immoveable properties in the name of the company and its directors were collected from IGR, Cuttack, and landed properties at Krushna Nagar, Chandaka, Kantabada in Khurda district and Kujanga & Padampur in Jagatsinghpur district were traced. “Ad-interim proposal for attachment of the landed properties worth Rs 2,07,85,349  was submitted by EOW on 07.03.2018 under the provision of Sec.3 of OPID Act to the Finance Department and accordingly those were attached on 09.04.2018,” it added.

Chinmay Mallick and Rojalin Mallick were arrested in 2017.