Govt, ED Face-off over Assets Seizure

Admin   |   05 August, 2015   |   858   |   3980

BHUBANESWAR: Odisha Government has asked the Enforcement Directorate (ED) to refrain from attaching assets which have already been confiscated by the State agencies in the chit fund scam as the latter had sought access to bank accounts of the accused ponzi firms.

The Central agency recently wanted access to some of the bank accounts of Rose Valley Group which were taken over by the Competent Authority at Cuttack following confiscation by Economic Offences Wing (EOW) last year.

Sources said of Rs 51 crore which were attached by the EOW and subsequently taken over by the Competent Authority following the designated court’s order, the ED wanted access to about Rs 13 crore.

“Last month, the banks concerned sought permission from the Competent Authority which the latter declined on the grounds that the attachments have been made absolute following court orders and ED has no authority,” sources said.

The Competent Authority at Cuttack has already received an interest of about Rs 56 lakh on the bank deposits of Rose Valley till June 30. The interest components will also go to people who had invested in the firm when the reimbursement starts.

In November last year, the ED had confiscated Rs 295 crore parked in 2000-odd accounts in the State. Some of these accounts were apparently already seized by the State agency.

In fact, the duplication of attachment by ED has become an irritant for the State Government. In the last six months, the Finance department has written to the agency thrice to stop attaching the same property which were confiscated by the State agencies.

When contacted, Director (Institutional Finance), Finance department Dr Tapan Kumar Pradhan said, “We have made it clear to the ED that it has no jurisdiction in cases where State Government has already completed attachment. We have provided the agency as well as the Finance Ministry a list of such companies.”

However, neither the agency nor the Ministry has replied to the Government indicating that there will be no agreement on the matter. If sources are to be believed, the matter has to be taken up at  a higher level because the issue involves reimbursement of deposits of the investors which will not be possible if ED has its way.

While under the Odisha Protection of Interest of Depositors (in Financial Establishments) Act 2013, the designated courts rule the attachment, in case of the ED, the attachment orders are passed by a panel of officers.

The duplication of attachment is not confined to Rose Valley. The ED had attached assets worth Rs 158 crore of Seashore Group most of which were earlier confiscated by the EOW, including silver and gold items, landed property and factories.

Similarly, the Commissionerate of Police, Bhubaneswar-Cuttack had attached property of Rs 410 crore of Artha Tatwa Group and later, ED attached Rs 84 crore of it.

The EOW of the State had initiated investigation against 190 financial establishments in connection with the chit fund scam. The State Finance department issued interim attachment orders against 19 companies and about 21 cases have been sent for prosecution. So far, in two cases, attachment orders have been issued by the designated courts making the confiscation absolute.