CUTTACK: For the first time, the special designated court dealing with chit fund cases on Tuesday has convicted Managing Director (MD) of Shirdi Sai Estate Private Limited under Odisha Protection of Interest of Depositors (OPID) Act.
The special court has sentenced Prakash Chandra Panda, MD of the chit fund company, to undergo rigorous imprisonment (RI) for five years and imposed a fine of ` 3 lakh. The convict has to undergo RI for another two years, if he fails to pay the fine, the court ordered.
As per reports, Panda had set up head office of the company at Bhubaneswar in 2006 and opened its branches at Sora, Basudevpur and Balasore.
Alluring the public with assurance of providing homestead land at low price, Panda had collected around `1.5 crore from more than 150 people. He had made an agreement to return double of the invested money after four years if he fails to provide the land.
As the ponzi firm neither provided land to investors nor returned their money, some investors filed a writ petition in the Orissa High Court. Later, acting on the direction of the High Court, the economic offence wing (EOW) of the Crime Branch registered a case in this regard and investigated into the allegation by arresting Panda on February 16, 2014 from Surya Vihar in Bhubaneswar.
The economic offence wing, which had seized 1.67 acre of landed property under Bhubaneswar tehsil in Khurda district worth `26.12 lakh as per initial evaluation, two cars including a Ford Fiesta and Endeavour and bank accounts, had proposed to the Government to issue an order for attachment of properties of the chit fund company.
After issuing ad interim order for attachment of properties by Finance department, Cuttack Additiional District Magistrate (Revenue) Bibhuti Bhusan Das had filed a case before designated court seeking permission to sell the properties of the chit fund company to ensure refund of the money to the duped investors.
After going through the documents and evidence produced by the Government on November 23, the special court had directed to sell the properties of Shirdi Sai Estate Private Limited through auction, and distribute the sale proceed among the duped investors.
While ponzi firm MD had produced one witness in his support, special public prosecutor Subrat Mohanty produced two witnesses.