In accordance with the Prevention of Money Laundering Act of 2002, the Directorate of Enforcement (ED) has temporarily attached 139 movable and immovable properties that belong to the Rose Valley Group of Companies and their Directors, and are currently worth at around Rs. 150 crore.
The Rose Valley financial fraud was a significant financial fraud that occurred in India. A collection of enterprises known as The Rose Valley Group claimed to be engaged in a wide range of industries, including media, hotel, and real estate. Unfortunately, it was discovered that the business was operating a Ponzi scam and was taking money from investors while disguising their transactions as investment programmes.
Almost 1.2 million investors were reportedly involved in the scam, which had an estimated value of Rs. 17,000 crore (around $2.3 billion). The business allegedly promised investors significant returns but instead utilised the funds to pay off previous investors and for the personal gain of the owners and top executives of the business.
The investigation under the provisions of PMLA, 2002, against Rose Valley Group of Companies and others, was initiated on the basis of a FIR registered by the BI(EO), Assam Police, and subsequently 2 FIRs registered by CBI, Guwahati against the Rose Valley Group of Companies and its Directors and also filed its charge-sheet in both the cases in 2020, wherein they had alleged that an amount totaling to Rs. 718 Crore (approx) remain to be unpaid to the investors of Assam.
A chain of agents with offices in Assam, West Bengal, Tripura, Odisha, Jharkhand, and other states were used to promote the bogus and manufactured schemes that were the foundation for the investigations that the Enforcement Directorate undertook in accordance with the PMLA.
M/s. Rose Valley Real Estate & Construction Ltd. (RVRECL) and its affiliated entities offered schemes in Assam. The money obtained from the sale of fraudulent schemes was moved to Rose Valley Group’s corporate headquarters in Kolkata, and from there, it was dispersed to the accounts of numerous businesses under the pretence of loans and advances. These companies’ bank records and ledgers were gathered and carefully examined to track the proceeds of crime.
139 immovable properties, including flats, offices, shops, and land banks, registered in the names of different Rose Valley Group companies and its directors and situated in the states of Tripura, West Bengal, and Andaman, have been located and are currently temporarily attached.
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