Home National ED restitutes ₹12 crore to defrauded investors of Rose Valley Group

ED restitutes ₹12 crore to defrauded investors of Rose Valley Group

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ED restitutes ₹12 crore to defrauded investors of Rose Valley Group

The Rose Valley Group had amassed illegal deposits from the public, promising high returns and land parcels

Rose Valley Chit Fund Group Chairman Goutam Kundu.

Rose Valley Chit Fund Group Chairman Goutam Kundu.
| Photo Credit: PTI

The Directorate of Enforcement (ED), Kolkata Zonal Office has achieved the restitution of ₹12 crore to the defrauded investors of the Rose Valley Group. The Central investigation agency has been probing the scam for over a decade where thousands of deposits were duped of their savings.

The Rose Valley Group had amassed illegal deposits from the public, promising high returns and land parcels. Following its investigation, the ED has attached multiple properties belonging to the Rose Valley Group.

Two cases booked

“The ED booked two cases under the PMLA: in the first, properties worth ₹12 crore were prayed for confiscation, and in the second, properties with deed value of around ₹1200 crore were prayed for confiscation. With the trial in the first case already underway, the ED requested the court for the release of properties, paving the way for further restitution of a lot more properties in the second chargesheet,” a press statement by the ED said.

The chit fund scam came to the fore in 2013 and several deposit seeking companies like Rose Valley Group and Saradha Group had duped millions of investors in West Bengal and adjoining States. Questions were raised by depositors when they will get back their money as investigation went on for nearly a decade.

“The ED had requested the Assets Disposal Committee (ADC) constituted by the High Court to approach the Hon’ble Special Court (PMLA) for restitution of properties attached or seized by the ED. Subsequently, the ADC filed the application under Section 8(8) of PMLA before the Special PMLA Court,” the statement added.

According to the Central investigation agency, the Rose Valley promoters opposed this move before the Special Court (PMLA), but the ED and ADC successfully convinced the court of the merits of the request, obtaining an order for release of attached properties in favour of the bona fide investors.

The agency also added that claimants receiving the money must execute a bond to refund or reimburse the sum if directed by the ADC or the court later in the proceedings or at the trial’s conclusion.

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money laundering

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fraud

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West Bengal

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