Saradha scam: To pay back investors, ED seeks court's nod to auction assets

Kolkata: The Enforcement Directorate (ED) is soon expected to approach a special court in Kolkata seeking permission to auction Saradha Group’s seized assets, valued at about Rs 1,000 crore, in an attempt to pay back duped investors. The agency, which is probing the case under criminal provisions of the Prevention of Money Laundering Act (PMLA), has almost completed its investigation into the case and is expected to file a charge sheet by June. Sources said the agency will put in a request application in the court to allow it to auction assets that have been attached by its zonal office in Kolkata after approval of the Adjudicating Authority of the PMLA, an appellate court for money laundering cases. [caption id=“attachment_2254750” align=“alignleft” width=“380”] A Saradha investor crying. PTI[/caption] The possession of such assets has been taken over by ED. “The agency has attached assets to the tune of approximately Rs 1,000 crore in this case spread across various states. But what is the use of freezing these suspected and tainted assets if no help can be extended to those who lost their valuable deposits through the fraudulent schemes floated by the group?” one of the sources asked. Hence, the sources said, the ED has decided to approach the court and seek auction of the assets which include land properties, movable and immovable assets and vehicles. “The cash seized in this case is not large and there is no provision to auction these. But land assets can be sold and money can be deposited in government coffers which can be committed for the help of the duped investors,” they said. The sources claimed that in numerous cases the seized assets are in the names of various firms floated by Saradha group Chairman Sudipta Sen and since his incarceration in the jail there is no clarity on their ownership. They added while there has been no precedent of such an auction being done by the agency in a money laundering case earlier, a beginning could be made considering the huge amount of money of investors at stake in this case. “The plea of the agency will also coincide with the filing of the charge sheet in this case by next month,” they said. The central probe agency, till now in its investigation, has found that a maze of 338 bank accounts and 224 companies were used by the perpetrators of the ponzi scam which allegedly duped investors in various states including West Bengal, Odisha and Assam. The CBI, probing the case on directions of the Supreme Court, has also filed a charge sheet in a court in Kolkata. PTI