ED attaches properties worth ₹70.11 crores in Rose Valley Ponzi Scheme Case

New Delhi: The Enforcement Directorate (ED) has provisionally attached movable & immovable properties belonging to various entities / individuals who received funds from Rose Valley Group and related entities having book value of ₹.70.11 crore under the provisions of the Prevention of Money Laundering Act, 2002(PMLA). The attached properties includes Bank Accounts of M/s. Multiple Resorts Pvt. Ltd, St. Xavier’s College, Kolkata, M/s. Knight Riders Sports Pvt. Ltd. etc. to the tune of ₹ 16.20 crores and 24 acres of landed property at Ramnagar and Mahishdal, Purba Medinipur, West Bengal, Flat at Dilkap Chambers, Mumbai and 1 acre of landed property at Jyoti Basu Nagar, New Town, Kolkata, one Hotel at VIP Road, etc. of Rose Valley Group.

ED initiated investigation under PMLA on the basis of the FIRs / Charge Sheets received from West Bengal Police against Rose Valley Group of Companies and others. From the FIRs / Charge Sheets, it reveals that Rose Valley Group of Companies were illegally and fraudulently collecting deposits from public with the intention to cheat them by falsely promising high returns on their investment and thereby committed offences punishable under Sections 120B & 420 of IPC which are the Scheduled Offence in terms of Section 2(1)(y) of PMLA.

Investigation under PMLA has revealed that Rose Valley Group of Companies collected more than ₹ 17,520 crores from public throughout India by luring depositors with false promise of high return/interest on their deposits out of which an amount of ₹ 10,850 crores was refunded and remaining ₹ 6670 crore is still unpaid which constitutes the proceeds of crime. The Company diverted and siphoned the amount through cheating and had no real business that could repay this amount. Earlier ED had identified and attached properties under PMLA having tentative market value of around ₹ 4,680 Crores which includes several luxurious resorts, hotels, vehicles, flats, lands, gold, jewellery, etc. With this attachment the total market value of properties, so far attached in Rose Valley Group of Company Cases has reached around ₹ 4750 Crores.

The promoter/owner/chairman of Rose Valley Group of Companies. Gautam Kundu was arrested by Enforcement Directorate in March’2015 and is still in Judicial Custody.

Further investigation is in progress.