Cuttack, May 16: The court of the additional district & sessions judge, Cuttack, today gave its permission to hold public auction of Bhubaneswar-based Sai Pragati Group of Companies’ properties. 

The economic offences wing had attached these properties during its inquiry into the deposit collection scam.

The attached properties — both movable and immovable — included 47 acres in Bhubaneswar, Khurda, Pipili and Puri and frozen bank accounts with deposits of Rs 2.77 crore.

“This is the fifth order to be passed by the designated special court in Cuttack under the Odisha Protection of Interests of Depositors (In Financial Establishments) Act, 2011 for public auction of attached property of a sham deposit collection company,” additional district magistrate (ADM), Cuttack, Bibhuti Bhusan Das told The Telegraph today.

“The designated court had issued the first order on February 25, 2015 in the case of Rose Valley Group of Companies, second order on May 18, 2015 in the case of Safex Infra India Limited, third order on September 23, 2015 in the case of Astha Group of Companies and fourth order on December 23, 2015 in the case of Golden Land Developers Group of Companies,” Das said.

Based on economic offences wing’s proposal along with property details, the state finance department had on July 28, 2014 issued an ad-interim order for the property attachment of Sai Pragati Group of Companies under the OPID Act.

Subsequently, on August 14, 2014, the additional district magistrate (ADM), Cuttack, Bibhuti Bhusan Das (the competent authority under the Act) filed a petition before the designated court for making the ad-interim order absolute and for direction to sell the attached property by public auction.

The designated special court endorsed the petition today in the case. “In his order, the presiding officer of the designated court S. K. Mohapatra made the order of attachment absolute and directed the applicant petitioner-cum-competent authority (ADM, Cuttack) to sell the properties by public auction and release the sale proceed for equitable distribution among the depositors the money attached and realised out of the sale,” special public prosecutor Subrata Mohanty told The Telegraph today.

“The prosecution had exhibited 108 documents and depositions by three witnesses. Among those named accused in the case included Sai Pragati Group of Companies managing director Debashis Mohanty and directors — Aswini Das, Surat Sahu and Nirmal Prasad Padhi,” Mohanty said.

The Sai Pragati Group of Companies constituting of Sai Pragati Assets and Properties Pvt Ltd and S-Virgin Worldwide Concepts Ltd ran their real estate business in unauthorised manner, raising money from the depositors illegally and cheating the hard earned money of the innocent depositors by promising to provide low cost plots and doubling the deposited amount in two years.