By Our correspondent in Cuttack, February 25, 2015 :

The duped chit fund investors in Odisha has something to smile with a special court in Cuttack today asking the Odisha government to confiscate property worth Rs 63.64 crore belonging to the ponzi firm Rose Valley Group in the state, auction it and distribute among the investors.

Justice PK Sasmal in his judgment has asked the state government to confiscate the property under the Odisha Protection of Interest of Depositors’ Act-2011.

The Group had floated the schemes promising gullible investors in various states returns of between 8% and 27% on their investments.

Earlier, the ED had frozen Rs 295 crore lying in these bank accounts under the provisions of the Prevention of Money Laundering Act (PMLA). It was the biggest ever attachment done by the ED under the PMLA in the country.

The ED also had discovered that the Rose Valley Group had floated 27 companies for running its chit fund operations out of which only half-a-dozen were active.

The ED had found that the Group had made “cross investments” in various sister firms to suppress its liabilities towards investors.