Calcutta, May 11: Calcutta High Court today set up a three-member committee to start the process of refunding the investors of Rose Valley Real Estate and Construction Ltd.

"Justice Dilip Seth, former judge of Calcutta High Court, the inspector-general of registration himself or any officer appointed by him and the managing director of Rose Valley Real Estate and Construction Ltd will be the members of the committee. The committee will assess the valuation of the properties belonging to the company and sell them," Justice Arijit Banerjee said in his order.

The judge also directed the committee to file its first report about the progress of the refunding process on August 14, when the matter would come up for hearing.

"After receiving the final report from the committee, the court will decide its course of action," Justice Banerjee said.

He made it clear that the committee would conduct the process of seizing and selling properties under the scanner of the court.

The high court had on May 5 initiated the process of returning investors their deposits with the MPS Group.

Justice Banerjee's directive today followed a petition moved by the company, challenging a government order of 2014 restraining it from selling its properties.

Moving the petition, Rose Valley counsel Kishore Dutta, said: "The Securities Appellate Tribunal of Sebi in 2012 had allowed the company to refund the money to its depositors by selling its properties. But the state authorities, through a directive, had asked the company not to sell its assets. The court should allow the company to sell its assets."

Additional advocate general Lakshmi Gupta argued that his government was also in favour of refunding the money, which is why it had entrusted the Justice Shyamal Sen commission with the job.

The bench then decided to set up the committee.