In a significant development, the Supreme Court of India has issued an order directing the Income Tax officials to expedite the property valuation process for Golden Forest India Limited (GFIL), a company embroiled in a major financial scandal. The directive aims to facilitate the return of investments to approximately 14 lakh defrauded investors, many of whom have been waiting for years to recover their money.
The Chandigarh-based company, which began its operations in 1987, had collected funds from investors promising high returns through its land acquisition schemes. GFIL reportedly owns about 7,750 acres of land across various states in India. However, in 1997, the Securities and Exchange Board of India (SEBI) initiated an investigation against GFIL over alleged financial irregularities, leading to legal battles that reached the Supreme Court.
In a hearing held on July 16, a bench comprising Justices BR Gavai and Sanjay Karol reviewed the status of the valuation of GFIL properties, a critical step towards liquidating assets to repay investors. The bench stated, “With regard to the valuation of certain properties (as we had directed in earlier orders) the senior counsel appearing for the Union of India states that the process is underway and he will be in a position to inform about the current status of the same on the next date of hearing.”
The court has set the next hearing for August 28 and appointed senior advocate Sunil Fernandes as amicus curiae to assist in the matter. The justices emphasized the importance of completing the property valuation within four weeks to ensure a swift resolution for the investors.
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GFIL’s initial appeal to investors was based on the promise of up to 20% returns for a minimum investment of Rs 1,000, attracting a substantial capital flow that quickly grew to over Rs 1,037 crore. However, following the SEBI’s investigation and subsequent legal proceedings, the Supreme Court took a proactive role in overseeing the recovery process. In 2018, the court directed that 70% of the collected amount, approximately Rs 700 crore, be returned to verified claimants.
