Court Orders Seizure of Real Estate Firm's Assets for Defrauding Investors
A court in Odisha's Balasore district has ordered the attachment of properties of Shri Sai Infrastructure, a real estate firm that duped investors by promising them flats and shops.
Real EstateOdishaShri Sai InfrastructureOpid ActInvestor FraudReal EstateJul 12, 2024
The court also directed the public auction and equitable distribution of the money among the investors. Shri Sai Infrastructure had taken advances from several people in 2009, promising them to provide residential flats and shops at Fakir Mohan Golai in Balasore town. However, the firm failed to keep its promises and instead siphoned off over Rs 3 crore from 14 investors.
The investors, who lost their money, lodged a complaint with the Sahadevkhunta police station in 2016. The government subsequently filed a petition before the court, seeking absolute attachment of moveable and immovable properties of the firm. The court's ruling is a significant step towards protecting the interests of investors who have been duped by fraudulent real estate companies.
Real estate firms have been under scrutiny in recent years for their unscrupulous practices, including duping investors and delaying project deliveries. The OPID Act is a legislation aimed at protecting the interests of depositors and preventing fraudulent activities by companies. The court's ruling is expected to set a precedent for similar cases across the country.
Information
Shri Sai Infrastructure is a real estate firm based in Odisha. The company has been involved in several real estate projects in the state, including residential and commercial developments. However, the company's reputation has been marred by allegations of fraud and mismanagement.
The OPID Act is a legislation enacted by the Odisha government to protect the interests of depositors and prevent fraudulent activities by companies. The Act provides for the attachment of properties of companies that default on payment or engage in fraudulent activities.
Keywords Tags real estate, Odisha, Shri Sai Infrastructure, OPID Act, investor fraud
Frequently Asked Questions
What is the OPID Act?
The OPID Act is a legislation enacted by the Odisha government to protect the interests of depositors and prevent fraudulent activities by companies.
What is Shri Sai Infrastructure?
Shri Sai Infrastructure is a real estate firm based in Odisha. The company has been involved in several real estate projects in the state, including residential and commercial developments.
How many investors were defrauded by Shri Sai Infrastructure?
According to the reports, 14 investors were defrauded by Shri Sai Infrastructure, with the company siphoning off over Rs 3 crore from them.
What is the purpose of the OPID special court?
The OPID special court is set up to protect the interests of depositors and prevent fraudulent activities by companies. The court has the power to attach properties of companies that default on payment or engage in fraudulent activities.
What is the significance of the court's ruling in this case?
The court's ruling is significant as it sets a precedent for similar cases across the country, sending a strong message to real estate companies that fraudulent activities will not be tolerated.
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