FCC

Start refunding investors of real estate scheme

2023-09-11

The Orissa High Court has recently issued new directives to the competent authority, namely the additional district magistrate (ADM) of Cuttack, under the provisions of the Odisha Protection of Interest of Depositors (OPID) Act. These orders are aimed at initiating the refund process for investors who had deposited sums not exceeding Rs 8,000 with GLP Developers Limited and Golden Land Developers Limited. These groups, involved in deposit collection and real estate ventures, are alleged to have amassed a total of Rs 590.68 crore through their branch offices located in Balugaon, Berhampur, Bhubaneswar, Bhanjanagar, Paralakhemundi, and Bhawanipatna.

The ruling, delivered by the single judge bench of Justice Biswanath Rath on September 1, modifies a previous order issued on May 20, 2022, which had directed the competent authority to oversee the refund process for small investors with investments up to Rs 10,000.

This development comes within the context of a petition filed by GLP Developers Limited and Golden Land Developers Limited back in 2021. The companies had raised concerns that despite substantial collections from the chit fund companies by the state government, there remained outstanding dues owed to identified depositors. The Orissa High Court has been presiding over this matter, seeking to address these issues and ensure the protection of depositor interests.