1 / 8 2025:CGHC:51712 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 5436 of 2025 M/s. Bhardwaj Promoters & Builders Through Its Partner Namely Sunil Chandrakar S/o Ajay Chandrakar, Aged About 44, R/o Deendayal Upadhyay Nagar, Shriram Park, N.H. 17, Raipur District Raipur Chhattisgarh ... Petitioner versus 1 - State of Chhattisgarh Through Secretary, Department of Revenue And Disaster Management, Mahanadi Bhawan, Mantralay New Raipur, District Raipur Chhattisgarh 2 - Collector, Durg District Durg Chhattisgarh 3 - Additional Collector Durg, District Durg Chhattisgarh 4 - Tehsildar Bhilai-3, District Durg Chhattisgarh 5 - Yash Dream Real Estate Limited Through Its Director Amit Kumar Shrivastava, S/o Satendranath Shrivastava, Aged About 44 Years, R/o Block No. 110, Unique Apartment, Radhika Nagar, Supela, Bhilai, Tahsil And District Durg Chhattisgarh ... Respondents ASHUTOSH MISHRA Digitally signed by ASHUTOSH MISHRA Date: 2025.10.27 10:54:01 +0530 2 / 8 For Petitioner : Mr. Manoj Paranjpe, Sr. Adv. along with Mr. Arpan Verma, Advocate For State : Mr. Praveen Das, Dy. AG (Hon’ble Shri Justice Arvind Kumar Verma) Order on Board 16/10/2025 1. With the consent of learned counsel for the parties, the matter is heard finally. 2. By way of the instant petition, the petitioner has prayed for the following reliefs:- 1] That, this Hon'ble Court may kindly be pleased to writ/writs, order/orders, direction/directions quashing the order/letter dated 03.09.2025, bearing no. 7008/Chit Fund/2025, written by Additional Collector, Nodal Officer Chit fund, District Durg (C.G) to Tehsildar, Bhilai - 3, District Durg (C.G). so far as it relates to forfeiture of amount to the tune of Rs. 6,93,660/- is concerned. 2] That, this Hon'ble Court may kindly be pleased to writ/writs, order/orders, direction/directions to the respondent authorities to refund the amount to the tune of Rs. 6,93,660/- along with the applicable interest within a stipulated period of 1 months and the Hon'ble Court may kindly be further pleased to direct the respondents to pay the interest on the amount of Rs. 96,81,340/- which was refunded vide order 03.09.2025 from the date of the 3 / 8 deposit to the date of its refund. 3] That, this Hon'ble Court may kindly be pleased to grant any other relief(s), which is deemed fit and proper in the aforesaid facts and circumstances of the case. 3. The brief facts of the case as projected by the petitioner are that the petitioner is engaged in the business of Promoters and Builders at Village- Kugada, District- Durg (Chhattisgarh). One Yash Dream Real Estate, in a well-planned manner, by forming a company in the name of Yash Dream Real Estate, by preparing forged documents, by deceiving the general public in the name of the company by promising them higher interest, doubling the money in a short time, by telling various attractive schemes, fraudulently collected money from the investors. After receiving the amount from the investor, the Yash Dream Real Estate was not paying the amount deposited by the investors even after maturity nor paying the interest on the deposited amount of investor, fraud was committed by collecting Rs. 21,86,34,016/- (twenty-one crore eighty-six lakh thirty-four thousand sixteen rupees) from about 2695 people. In this regard, one complaint was made by investors against the Yash Dream Real Estate, a FIR bearing number 596/15 was registered at police station Supela, Bhilai for the offence under sections 420, 409, 120B, 34 of IPC, 1860 & section 3, 4, 5, 6 of Prize Chits and Money Circulation Scheme (Banning) Act, 1978 and section 10 of the Chhattisgarh Protection of Depositors' Interests Act 2005. Case bearing no. 51/B- 4 / 8 121/2015-16 was registered and after considering and analyzing the police report, relevant documents, statements, opinion of the Deputy Director of Prosecution, Durg and the provisions contained in the Chhattisgarh Depositors' Protection Act 2005, the District Magistrate was satisfied with the available evidence that the directors of the non-applicant company Yash Dream Real Estate Ltd. are acting in a deliberate manner with the intention of defrauding the depositors. Therefore, in exercise of the powers conferred under Section 7(1) of the Chhattisgarh Protection of Depositors' Interests Act, 2005, DM pass an Interim order to confiscate/attach properties mentioned in the list of properties submitted by the Superintendent of Police, District Durg. The passed order should be published in local newspapers. Order dated 23.04.2016, passed by District Magistrate, Durg was challenged before the Special Judge (Chhattisgarh Protection of Depositors' Interests Act), Durg by preferring a Criminal M.J.C. no. 28/2016 and after considering relevant documents and statements, the order passed by the District Magistrate, Durg dated 23.04.2016 has been upheld and made absolute vide order dated 14.07.2023. As per the order bearing no. 5979/Case/Collector /2023 passed on 25.07.2023, auction publication was floated on 28.08.2023 under section 147(b) of Chhattisgarh Land Revenue Code, 1959, for the auction of the land situated in Village Kugada, Khasra No. 13, measuring 0.898 hectares, which was registered in the name of Yash Dream Real Estate Limited Director Amit Srivastava, and in the said auction proceeding 57 persons/entities participated and has 5 / 8 deposited the earnest money. The auction was held on 14.09.2023, and the petitioner herein by placing the final/highest bid in the auction and as per the rules i.e. 4,15,00,000/-. That, 25 percent of the final bid amount of Rs. 1,03,75,000/- (one crore three lakh seventy- five thousand rupees), has been deposited by the petitioner by furnishing the DD and Cheques. In the meanwhile some of the investor who were not party to the proceeding before District Magistrate, Durg & Special Judge (Chhattisgarh Protection of Depositors' Interests Act), Durg preferred an M.A. bearing no. 120/2023, before this Court under section 16 of the Chhattisgarh Protection of Depositors' Interests Act, 2005. On, 04.09.2023, this Court has passed an interim order and issued direction that "Considering the facts and circumstances of the case, it is directed that auction proceedings may go on, but the auction of the property shall not be finalized without permission of this court, till further orders". 4. Thereafter this Court has passed the final order on 10.12.2024 and the appeal filed by investor was allowed, and the order dated 14.07.2023 passed by the Special Judge in CRMJC No. 28/2016 has been set-aside, since the order is in violation of principles of natural justice and further the case has been remanded back for passing the order on merits after giving an opportunity of hearing to the investors. Thereafter, on 05.02.2025 application/representation was made by the petitioner before Tehsildar, Bhilai - 3, (C.G) to get back the 25 percent amount of the final bid amount i.e. Rs. 1,03,75,000/- 6 / 8 (One Crore Three Lakh Seventy-Five Thousand) which was deposited by the petitioner on earlier occasions, because at present the case is pending and it is likely to take time for the final decision of the case and in future the action will be taken as per the order passed by the Courts, hence in the near future the registration/sale deed of the land as per the auction is not likely to happen. Tehsildar, Bhilai 3, (C.G) has forwarded the representation/application made by the petitioner to the Collector, Durg on 13.04.2025 and vide letter dated 03.09.2025, bearing no. 7008/Chit Fund/2025, Additional Collector, Nodal Officer Chit fund, District Durg (C.G) the Additional Collector has decided the application made by the petitioner dated 05.02.2025 and has directed the Tehsildar, Bhilai - 3, (C.G) to refund the amount of Rs. 96,81,340/- and the bid of the petitioner stands cancelled and the second highest bidder was invited for sale of the land. 5. Learned counsel for the petitioner would contend that the petitioner has deposited the 25 percent amount of the final bid amount i.e. Rs. 1,03,75,000/- (One Crore Three Lakh Seventy-Five Thousand) but the collector has only directed to refund the amount of Rs. 96,81,340/- to the petitioner and the amount of Rs. 6,93,660/- has been withheld without any cogent reason. He would next contend that there was no mistake on the part of the petitioner herein, therefore forfeiture of the earnest money deposited by the petitioner without the mistake is illegal and arbitrary. He would next contend that the order dated 14.07.2023 passed by the Special Judge 7 / 8 (Chhattisgarh Protection of Depositors' Interests Act), Durg has been set-aside by the High Court and from bare perusal of the said order it is quite vivid that it was total lack of application of mind by the authorities while auctioning the property and for the fault of the authorities the petitioner cannot be made to suffer. He would next contend that an amount of Rs. 1,03,75,000/- was deposited by the petitioner on 14.09.2023 and the same was retained by the respondent authorities for a period of 2 years i.e. 24 months and it was returned vide order dated 03.09.2025 therefore, the petitioner is entitled for the interest on the said amount, which was lying with the respondent authorities. 6. Learned counsel for the respondent State contended that the Collector has directed to refund the amount of Rs.96,81,340/- to the petitioner and if the petitioner wants to withdraw the EMD amount of Rs.6,93,660/- which has been withheld by the Additional Collector, therefore, the petitioner may file an application before the Additional Collector. 7. I have heard learned counsel for the parties at length and perused the documents with utmost circumspection. 8. On perusal of the record this Court is of the considered view that there is no lapses or mistake on the part of the petitioner. The petitioner has deposited the 25% of the final bid amount i.e. Rs.1,03,75,000/- and due to the order passed by this Court, the petitioner could not proceed further, therefore, the petitioner is 8 / 8 entitled to receive the bid amount as earlier deposited. Therefore, it is directed that the Additional Collector i.e. the Respondent No.3 shall refund the balance amount of Rs.693660/- to the petitioner, subject to verification of the fact that the said amount has already been disbursed or not, within a period of 90 days from the date of production of copy of this order. 9. Accordingly, the instant petition is allowed. SD/- SD/- (Arvind Kumar Verma) JUDGE ashu