Orissa HC Directs Competent Authority To Start Refunding Investors Of Real Estate Scheme

Cuttack: The Orissa high court has issued fresh orders to the Cuttack ADM, who is the competent authority under the Odisha Protection of Interest of Depositors (OPID) Act, to start refund process to investors who had deposited not more than Rs 8,000 with GLP Developers Limited and Golden Land Developers Limited.

The group of deposit collection and real estate companies had allegedly collected Rs 590.68 crore through its branch offices in Balugaon, Berhampur, Bhubaneswar, Bhanjanagar, Paralakhemundi and Bhawanipatna.

The single judge bench of Justice Biswanath Rath issued the fresh order on September 1, modifying an earlier order issued on May 20, 2022, directing the competent authority for refund process for the small investors with investment up to Rs 10,000, TOI reported.

The HC has been adjudicating since 2021 on a petition filed by GLP Developers Limited and Golden Land Developers Limited which had alleged that in spite of the collection of huge amounts from the chit fund companies by the state government, there is non-payment of the dues to the identified depositors.

The delay had triggered protests by depositors leading in some cases to gherao and attack on offices of deposit collection companies, the petition alleged. Considering it as a “serious allegation”, the HC had issued the May 20, 2022 order.

The Court modified the order on September 1 after senior advocate Milan Kanungo representing the petitioners brought to notice of the court a clarification and suggestion by the competent authority regarding implementation of the court’s May 20 order, the report said.

The competent authority had suggested there can be equitable distribution of Rs 8,000 each against identified investors in the category of small depositors taken up for refund process considering the recovered funds at his disposal.

Taking note of it, Justice Rath said: “It is in partial modification of order dated 20.05.2022, this court directs the competent authority to complete the release proceeding in favour of the identified investors/depositors at least to the tune of Rs. 8,000 each.”

“Let there be complete disbursal of the amount at least within a period of two months from the date of communication of this order by the petitioner,” the Judge added. Kanungo further stated that there has already been payment of Rs 10,000 in favour of around 15,000 depositors.