A significant step in the process of making amends for victims of the Rose Valley Ponzi fraud was taken on saturday when Union minister of State for Finance Shri Pankaj Chaudhary gave a Demand Draft of Rs 515.31 crore to Justice DK Seth (Retd.), Chairman of the Asset Disposal Committee (ADC). The money would be used to reimburse the Rose Valley Group for defrauding about 7.5 lakh investors.
The Enforcement Directorate (ED), which linked the sum between 2015 and 2017 by following the money trail across 2,987 bank accounts used to transfer monies gathered from innocent investors, took this action following years of inquiry. Following confirmation from the Adjudicating Authority, the funds from these accounts were converted into more than 700 fixed deposits following the Prevention of Money Laundering Act (PMLA). These accounts were then blocked.
According to a statement from the Ministry of Finance, "this restitution is in line with the Prime Minister's commitment to return the money looted from poor people." Assets recovered in such schemes must be returned to their legitimate owners, the administration has repeatedly stated. This commitment has also been emphasized in a declaration made by the finance minister in parliament.
One of the biggest cases the ED has looked at is the Rose Valley case. The group is charged with defrauding investors, primarily from economically disadvantaged groups, by making promises of substantial returns on maturity of land parcels or hotel time-shares. According to ED investigations, the group made Rs 17,520 crore through various schemes, of which Rs 6,666 crore is still owed to investors and is considered proceeds.
Through the ADC, 32,319 investors had previously received a refund of Rs 22 crore. With the delivery on saturday, the total amount of restitution to date has surpassed Rs 537 crore. The calcutta High court oversaw the formation of Justice Seth's committee, which included representatives from the ED and other authorities. About 31 lakh claims have been submitted to the committee via its website (www.rosevalleyadc.com), and the process of verification and payment is still in progress.
Additionally, the ED has attached Rs 1,172 crore in movable and immovable assets that are currently being liquidated and have a current market worth of over Rs 2,000 crore. The agency has filed charges and is looking into five PMLA cases against the Rose Valley Group in West Bengal, Odisha, Assam, and Tripura.
The Enforcement Directorate (ED), which linked the sum between 2015 and 2017 by following the money trail across 2,987 bank accounts used to transfer monies gathered from innocent investors, took this action following years of inquiry. Following confirmation from the Adjudicating Authority, the funds from these accounts were converted into more than 700 fixed deposits following the Prevention of Money Laundering Act (PMLA). These accounts were then blocked.
According to a statement from the Ministry of Finance, "this restitution is in line with the Prime Minister's commitment to return the money looted from poor people." Assets recovered in such schemes must be returned to their legitimate owners, the administration has repeatedly stated. This commitment has also been emphasized in a declaration made by the finance minister in parliament.
One of the biggest cases the ED has looked at is the Rose Valley case. The group is charged with defrauding investors, primarily from economically disadvantaged groups, by making promises of substantial returns on maturity of land parcels or hotel time-shares. According to ED investigations, the group made Rs 17,520 crore through various schemes, of which Rs 6,666 crore is still owed to investors and is considered proceeds.
Through the ADC, 32,319 investors had previously received a refund of Rs 22 crore. With the delivery on saturday, the total amount of restitution to date has surpassed Rs 537 crore. The calcutta High court oversaw the formation of Justice Seth's committee, which included representatives from the ED and other authorities. About 31 lakh claims have been submitted to the committee via its website (www.rosevalleyadc.com), and the process of verification and payment is still in progress.
Additionally, the ED has attached Rs 1,172 crore in movable and immovable assets that are currently being liquidated and have a current market worth of over Rs 2,000 crore. The agency has filed charges and is looking into five PMLA cases against the Rose Valley Group in West Bengal, Odisha, Assam, and Tripura.
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