‘Sell land, use FD and settle dues’
The Madras High Court has directed the State government to appoint a special officer within three weeks to sell 12,176 acres of land owned by the defunct Kalaimagal Sabha, a registered society that was into real estate business, in various States besides utilising ₹94 crore lying in fixed deposits to settle the dues to the members who invested money in it. Justice S.M. Subramaniam said the High Court was wrong in having appointed retired district judges and others as Receivers in 1999 to realise the properties owned by the society and settle the dues of the investors. He recorded that only 1.72 lakh out of 4.20 lakh eligible members had received the money in 22 years. Stating that it was not the business of the High Court to oversee the transactions and grant approval for sale of properties of the society from time to time, the judge directed the government to appoint a Special Officer in the rank of Assistant Inspector General of Registration within three weeks so that the official could take over the administration from the Receiver and ensure return of money at the earliest. The Judge ordered that the case be listed on December 22.
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