The Economic Offence Wing (EOW) of the state crime branch has sought the permission from the finance department to attach properties of two more firms embroiled in the multi-million crore chit fund scam.
The two shady financial operators whose properties are set to be confiscated are Aastha International and Green Ray International. The two companies are facing allegations of duping over Rs 500 crore belonging to depositors.
Earlier, the EOW had handed over documents of five financial entities - Flourish India, Saradha Group, Sastra Enterprises Pvt Ltd and Seashore Group to the finance department for attachment of properties.
The Odisha Protection of Interests of Depositors (in Financial Establishment) Act, which is implemented in the state since September this year, contains extensive safeguards for protecting the small investors from the malpractices of fraudulent financial entities.
The Crime Branch has seized cash worth Rs 86 lakh, Rs 127 crore by freezing bank accounts, 203 kg silver, 1,583 kg gold and 22 four wheelers .
The land bank seized by the probe agency include 204 acres from Seashore Group, 1364 acres from Sarada Group, 234 acres from Artha Tatwa group and 24 acres from Flourish India.
A corpus fund of Rs 300 crore has been announced by the state government to give relief to the genuine small investors who have lost their money in the scam.
As per government estimates, 650,000 people have been duped to the tune of Rs 4,375 crore between January 2012 and June 2013, by the chit fund companies operating in the state.
The Justice R K Patra Commission of enquiry probing into the multi million crore chit fund scam had urged the state government to collect information/documents from the apex court, Odisha High Court, Securities & Exchange Board of India (Sebi) and Reserve Bank of India (RBI) in connection with the scam. The commission has received more than 800,000 affidavits pertaining to duping of investors' money by shady financial companies.
The probe panel had recently revealed that notices sent to the fraudulent entities have been returned by the postal department with the endorsement 'addressee left'. The notices were sent to addresses indicated by the depositors in their affidavits filed before the commission.
In the list of firms with notices undelivered are Rose Valley Real Estates & Constructions Ltd, Adarsh Wealth Ventures Ltd, Flourish Development India Ltd, Artha Tatwa Multipurpose Cooperative Society Ltd, Seashore Multipurpose Cooperative Ltd, Astha International Ltd and Sastra Enterprises to name a few.
