Cuttack, Oct 29: In a significant development, a specialized court in Cuttack, Odisha, has issued an order for the authorities to reimburse the funds to small-scale investors who were victims of fraudulent activities by two chit fund companies.

The companies in question, namely Golden Land Developers and GLP Developers, had attracted substantial sums of money from the public, promising lucrative returns on investments. However, these assurances went unfulfilled, compelling the affected investors to seek recourse through the Orissa High Court.

Upon hearing the case, the High Court directed the officer-in-charge and the Cuttack ADM to identify the defrauded investors and ensure the return of their investments. This would be accomplished through the auctioning of properties seized from the implicated companies.

The ADM reported to the court that a total of 476,102 investors had sought the return of their invested capital, amounting to a cumulative sum of Rs 479,543,274. Notably, among these investors, 259,280 were categorized as small investors, having contributed less than Rs 8,000 each to the companies.

Further information revealed that the auction of the companies' properties resulted in a collection of Rs 88,811,810, which was subsequently deposited in a bank. With interest accrued, the total amount now stands at Rs 102,177,569.

In light of these findings, the special court has directed the ADM to refund the deposited funds to the small investors, totaling Rs 92,587,8201.

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