Recover assets in fraud case, court says

NASHIK: The District Consumers' Dispute Redressal Forum here has ordered the collector to auction assets of Samruddhi Wealth Management company to recover the Rs 1.44 crore that it has failed to return to its investors.
The company is located at Mumbai Naka, Nashik and is owned by Meena Ajay Kshatriya and Ajay Kshatriya, both from Sinnar.
Nearly 20 people had invested Rs 1 lakh to Rs 15 lakh with the company from April to September 2011.The president of Nashik District Consumers' Dispute Redressal Forum court said in his order that since the company had failed to return the funds collected from investors, "we therefore order the Collector of Nashik to recover the amount by locating and auctioning the property of the respondents".
KS Shelke, who represented the investors, said the company had promised investors attractive 7% returns and also that their investments would be protected against any kind of losses. "As a result, scores of people invested in the company," he said.
The investors registered a case with the consumer court in February 2013, after the company failed to give them any returns. "Those who had invested in the company since 2011, did not get any returns and hence registered their case with the district forum. The district forum in June 2013 ordered the company to return the investments, which were dishonoured and hence the investors against registered their complaint with the forum in August 2013," Shelke said.
The forum on March 12, 2014 directed the Nashik collector to recover assets from Samruddhi and its directors, auction the same and return the money of the investors.
The court observed in its order: "It is to be noted that while recovering the arrears of land revenue, it is the Collector and the Revenue staff who collects the information about the movable and immovable property of the person in default of payment of land revenue, attach the said property and put the said property to sell in accordance with the provisions of the Land Revenue Code and the Rules applicable to recovery of land revenue," the court observed.