BHUBANESWAR: The first-ever e-auction of assets of a Ponzi firm in the multi-hundred crore chit fund scam is likely to get underway next month as the final valuation of movable and immovable wealth of Rose Valley is nearing completion.
The competent authority at Cuttack, appointed under the Odisha Protection of Interest of Depositors (in Financial Establishments) Act, has already recovered Rs 48 crore from bank accounts of the firm, while valuation of immovable assets has reached the last stage.
Although the total cash in various bank accounts of Rose Valley Group is estimated at Rs 51 crore, at least Rs 3 crore is yet to be recovered by the competent authority since the Enforcement Directorate (ED) too has staked claim to the money. The ADM of Cuttack is the competent authority under the Act.
On Friday, the Sub Collector and Tehsildar of Cuttack carried out valuation of flats acquired by Rose Valley in a multi-storey building at Pahala. In February, a designated court had ordered liquidation of the assets of the Group so that sale proceeds can be paid to the investors as provided in the OPID Act. The total assets were valued at about Rs 63 crore but after final valuation, the off-set price for auction will be arrived at.
As per norms, a sub-divisional level committee carries out the valuation of immovable assets basing on the benchmark prices. The report is submitted to the Collector for his approval. Once the Collector approves the valuation, the assets are for the Competent Authority to auction.
“Our memorandum of understanding with MSTC Ltd, a Government of India undertaking, for the e-auction is ready. We are waiting for the valuation to be complete. If everything goes as per plans, the e-auction may take place next month,” ADM, Cuttack, BB Das said.
In fact, the Cuttack Competent Authority has also made significant progress in taking over the assets of Safex India Ltd, another chit fund firm whose property will be liquidated as per the court orders. As many as 19 cases are, currently, under Cuttack ADM’s authority.
However, there is a still a long way to go before the proceeds from the auction can actually be paid back to the small investors since the digitisation of details of depositors is underway by Justice MM Das Commission of Inquiry, which is probing the chit fund scam.
Once the digitisation process is over and verification of the depositors is complete, the reimbursement process can start.