The Rose Valley Chit Fund case, languishing in cold storage for more than a year and half now, was revived yesterday with the Enforcement Directorate (ED) attaching assets of the Rose Valley Group worth Rs 1,250 cr including 8 hotels and assets owned by the company, in its money laundering probe.
ED has also ordered for attaching 12 luxury cars of company chairman Gautam Kundu worth over Rs 6 cr, including a Rolls-Royce which was allegedly bought by Kundy by paying Rs 4.8 cr cash. The attached properties are located in Goa, Haridwar, Port Blair, Jaipur, Silchar and Kolkata. ED had earlier arrested Kundu in March 2015 for running Ponzi schemes. The size of the scam is estimated to be Rs 15,484 cr.
The CBI has also summoned Trinamool parliamentary party leader Sudip Bandyopadhyay in connection with the case. Names of several other politicians have also sprung up during the investigation. TMC MP Tapas Pal, who was director in two companies of Rose Valley, is already under ED scanner.
The Rose Valley scam has been claimed by the ED to be much larger in magnitude than the Saradha scam, probably as much as 6 times larger, with the former collecting deposits worth an estimate of Rs 15,000 cr from the public. Kundu has failed to repay investors around Rs 9,000 cr. The directorate had already submitted two chargesheets and arrested five directors of the company.
According to Livemint, the ED had attached Rs 2,630 bank accounts of the Rose Valley group, which had resulted in a total cash deposit of RS 296 cr. The companies under the Rose Valley group had failed to pay back depositors in Odisha and owed people an overall amount of Rs 362 cr.
The Rose Valley conglomerate had always denied receiving any kind of public deposits and said that it sold the right to enjoy hospitality at its hotels. It was however reported that its agents collected deposits with a promise these rights could be cashed on maturity.