Cuttack, Aug. 25: A local court has given its nod for public auction of properties of two sham deposit collection companies that were attached by the economic offences wing of the CID during its probe into the scam.

According to case records, two companies - Land India Real Estate Pvt Ltd and Land India Assets Ltd - had floated several dubious real estate schemes and lured people with offers of attractive returns on investments. But the companies duped the investors by going back on their promise.

Acting on several complaints, the economic offences wing had registered cases against Braja Sundar Mishra, managing director of both the companies, and directors Sambit Kumar Mohanty, Nrusinghanath Nanda and Laxman Panigrahi. It had attached the properties on August 12, 2015.

"This is the tenth order for public auction of attached properties that the designated special court has passed in the past two and half years under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011," special public prosecutor Subrata Mohanty said.

The additional district magistrate, Cuttack, the competent authority under the act, had filed a petition before the court for the public auction of properties. The court passed the order on Tuesday.

"The designated court approved the attachment order and directed the additional district magistrate to auction the attached properties. It has asked the competent authority to release the sale proceeds and realise the amount in bank accounts for equitable distribution among the depositors," Mohanty said.

"The total amount misappropriated by the accused persons is estimated to be around Rs 8.33 crore," Mohanty said.

The prosecution had submitted 42 documents and two witnesses - Bibhuti Bhusan Das (then additional district magistrate, Cuttack) and Saroj Kumar Rath (additional superintendent of police, economic offences wing).

The designated court had issued the first order on February 25, 2015, in the case of Rose Valley Group of Companies and followed up with identical orders in the case of Safex Infra India Limited, Astha Group of Companies, Golden Land Developers Group of Companies, Sai Pragati Group of Companies, Umamani Home Creations Pvt Ltd, Shiridi Sai Estate Private Limited and Shri Bhumi Group of Companies.

The last order for public auction of attached properties was given in the case of Sedil India Group of companies on March 8. The attached properties of the Bhubaneswar-based real estate company include 7.91 acre having a market value of nearly Rs 1.86 crore and Rs 8.12 lakh in ten bank accounts.

Tension in Puri

Tension prevailed at Beleswar Patna on the Puri-Konark Marine Drive today after conviction of Dera Sacha Sauda chief Gurmeet Ram Rahim Singh by a CBI court in a rape case in Haryana. Hundreds of local residents and activists tried to ransack an ashram of the Dera Sacha Sauda in the area after violence spread in various states this evening.