Rose Valley Ponzi scheme: ED facilitates restitution of Rs 19 cr to defrauded investors

Enforcement Directorate

The Enforcement Directorate (ED) has facilitated the restitution of Rs 19.40 crore to the defrauded investors of the Rose Valley Group Ponzi scheme on the orders of a special PMLA court in Kolkata, officials said on August 30.

The amount has been transferred to the Rose Valley Asset Disposal Committee (ADC) account according to the court directives on July 24 and August 17, the ED said in a statement.

"The ED had requested the Assets Disposal Committee, constituted by the high court, to seek restitution of properties attached or seized by the ED under the provisions of the Prevention of Money Laundering Act (PMLA). In compliance, the ADC filed an application under Section 8(8) of the PMLA before the Special Court," the ED statement said.

Despite opposition from the Rose Valley promoters, the ED and ADC were successful, resulting in an order to release the attached properties for restitution in favour of bona fide investors, the statement said.

The Rose Valley ponzi scheme was unearthed in 2013. The ED had registered a money laundering case in 2014 on the basis of an FIR filed by the West Bengal Police and the CBI against the Rose Valley Group of Companies.

The group allegedly floated 27 companies to run various schemes and collected Rs 17,520 crore from depositors in West Bengal, Assam and Bihar. With the recent attachment, the value of properties seized in the Rose Valley Group cases has reached around Rs 4,750 crore.

It is alleged that Rose Valley Group had amassed substantial deposits from the public under false and fraudulent promises of high returns and land allocations.

During its investigation, the ED identified and attached several properties belonging to the Rose Valley Group.

"The ED booked two cases under the PMLA: the first involves properties worth Rs 12 crore, and the second concerns properties with a deed value of approximately Rs 1,200 crore," the statement said.

The successful release of Rs 19.40 crore marks a pivotal step towards further restitution of additional properties, as outlined in the second charge sheet.

The special Prevention of Money Laundering Act (PMLA) court has directed that Rs 19.40 crore be disbursed to the bona fide claimants on a pro-rata basis or as instructed by the ADC or the court, the statement said.

"Claimants receiving the restitution are required to execute a bond to refund or reimburse the amount if so directed at any subsequent stage of the proceedings or upon conclusion of the trial. Furthermore, all claimants must comply with the instructions issued by the ADC regarding the disbursement process," the statement said.

(With PTI inputs)