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Chit fund scam: Nearly 2.4 lakh duped investors in Odisha to get refund

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Pic Courtesy: freepressjournal.in

Cuttack: In a significant verdict, the Cuttack Special Chit Fund court today directed the Odisha government to refund money to the depositors who had invested in Ponzi firm M/S Rose Valley Group of Companies.

As per the directive, the court ordered to refund Rs 92.08 crore to 2, 38, 477 depositors. This comes as a major relief to lakhs of duped investors who had put in money in alluring schemes of multiplying their investments manifold.

Initially, the investors who had invested up to Rs 7, 000 will get full refund and those who had invested between Rs 7, 000 and Rs 10, 000 will get Rs 7, 000 plus 50% of the amount invested above Rs 7, 000.

The refund will begin from panchayat level where the court had earlier directed for identification of small investors under the provision of Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011.

It may be mentioned here that money will be refunded to the investors through digital payment for hassle-free payment.

A notification was earlier issued in which it was mentioned that persons who had invested in seven companies of the Gose Valley Group of Companies – Rose Valley Hotels and Entertainments Ltd, Rose Valley Estates and Constructions Ltd, Rose Valley Realcon Ltd, Rose Valley Chain Marketing System, Rose Valley Industries Ltd, Rose Valley Fashions Pvt Lt, and Rose Valley Travels Pvt Ltd – will get back money provided they apply in specific format with details of their investment and other details before their respective Tehsildars.

In 2014, confiscation of Rose Valley company’s properties was initiated after the state finance department had ordered for attachment of the properties under Section 3 of Odisha Protection of Interests of Depositors (in Financial Establishment) Act of 2011.

The Economic Offence Wing (EOW) had seized movable and immovable properties of Rose Valley Group which included 17 acres land and buildings on it worth over Rs 11 crore, 32 bank accounts having over Rs 51 crore deposits and cash of Rs 47 lakh from some of the 65 branches of the company.