Calcutta HC orders ED to probe Vibgyor chit fund property sales defying court injunctions
Synopsis
Calcutta HC has ordered the ED to investigate how Vibgyor's properties — including ₹54 crore of land in North Bengal's Dooars region — were allegedly sold between 2021 and 2025 in deliberate defiance of court injunctions meant to protect depositors. It is a rare escalation that pulls federal enforcement into a state-level chit fund case.
Key Takeaways
A Division Bench of the Calcutta High Court directed the ED on 13 October 2026 to probe alleged covert sales of Vibgyor chit fund properties in violation of judicial injunctions.
Properties reportedly sold include land worth ₹54 crore in the Dooars region of North Bengal , plus other Vibgyor holdings.
Preliminary findings by the Directorate of Economic Offences indicate the violations occurred between 2021 and 2025 .
Properties were allegedly transferred to other companies through registered sale deeds, bypassing the court freeze.
The court ordered immediate initiation of asset seizure for properties not yet confiscated.
The next date of hearing is 26 November , when the state government, court-nominated committee, and ED must submit detailed reports.
A Division Bench of the Calcutta High Court on Tuesday, 13 October 2026, directed the Enforcement Directorate (ED) to investigate allegations that assets and properties belonging to chit fund entity Vibgyor were covertly sold in violation of standing judicial injunctions. The bench expressed sharp displeasure at how such transactions could have occurred despite pre-existing court orders freezing the assets.
What the Court Found
The Division Bench, comprising Justice Rajarshi Bhardwaj and Justice Sudip Dey, heard a report submitted by the state government that the Directorate of Economic Offences had conducted a preliminary investigation. According to that report, properties held in the custody of a court-nominated committee were exchanged in violation of judicial injunctions between 2021 and 2025.
Among the properties flagged was land worth ₹54 crore in the Dooars region of North Bengal, alongside other properties owned by Vibgyor in different locations — all reportedly sold despite court orders barring such transactions.
How the Violation Allegedly Occurred
Counsel for the depositors informed the bench that, notwithstanding the court-imposed injunctions, the properties were registered in the names of other companies and transferred through formal sale deeds — suggesting a deliberate attempt to circumvent the judicial freeze. The state government sought additional time to submit a complete account of the investigation process.
Court's Directives
After hearing all parties, the Division Bench issued two key directions: the ED is to immediately take up investigation into the alleged covert sales, and the process to seize assets of Vibgyor that have not yet been confiscated must commence without delay. The court fixed 26 November as the next date of hearing.
On that date, the state government, the court-nominated committee, and the ED will each be required to submit detailed reports to the court.
Background: The Vibgyor Chit Fund Case
Vibgyor is among several chit fund entities in West Bengal whose collapse left thousands of depositors — many of them small investors — facing significant financial losses. Courts have previously imposed asset-protection orders precisely to preserve the remaining value of such entities' holdings for eventual distribution to depositors. The alleged sale of ₹54 crore worth of assets in the Dooars region, if confirmed, would represent a serious breach of those protective measures. This comes amid a broader pattern of chit fund fraud cases in eastern India that have occupied courts and investigative agencies for over a decade.
What Happens Next
The ED's involvement marks a significant escalation, bringing federal financial crime enforcement into a matter that had largely been handled at the state level. With the next hearing on 26 November, the court has set a clear accountability timeline for all three parties. How swiftly the ED can trace and attach the allegedly transferred properties will determine whether depositors have any realistic prospect of recovery.
Point of View
The bitter irony is that the very judicial protection meant to safeguard their money may have been used as a procedural cover while assets were quietly drained. Whether the ED can recover these transferred assets — now in the hands of third-party companies — is a genuinely open question, and the answer will test whether financial crime enforcement in Bengal has the reach its mandate implies.
NationPress
14 Oct 2026
Frequently Asked Questions
What is the Vibgyor chit fund case?
Vibgyor is a chit fund entity in West Bengal whose collapse left thousands of depositors with financial losses. Courts imposed asset-protection injunctions on its properties to preserve value for eventual depositor recovery, but those properties have allegedly been sold in defiance of those orders.
Why did the Calcutta High Court direct the ED to investigate?
The court directed the ED to investigate after a state government report revealed that Vibgyor's properties — held by a court-nominated committee — were transferred to other companies through registered sale deeds between 2021 and 2025, in clear violation of judicial injunctions. The Division Bench expressed displeasure at how such transactions could occur under court supervision.
Which properties were allegedly sold illegally?
Properties worth ₹54 crore in the Dooars region of North Bengal were among those allegedly sold in violation of injunctions, along with other Vibgyor holdings in various locations. All were reportedly transferred through formal registrations to third-party companies.
What happens next in the case?
The ED is required to begin its investigation immediately and seize any Vibgyor assets not yet confiscated. The next court hearing is scheduled for 26 November, when the state government, the court-nominated committee, and the ED must each submit detailed reports.
Who is affected by the alleged illegal sales?
The primary victims are Vibgyor depositors, whose prospects of financial recovery depend on the assets remaining intact and recoverable. The illegal sales, if confirmed, would reduce the pool of assets available for eventual distribution to them.
