Odisha Sun Times Bureau
Bhubaneswar, Mar 22:
Enforcement Directorate (ED) today moved a local court here to confiscate the deposits collected by chit fund firm Rose Valley from Odisha under the Prevention of Money Laundering Act, 2002.
The financial investigation agency moved Khurda Sessions Court cum designated Special Court here seeking its permission for launching prosecution and confiscation of the properties amounting to Rs 332 crore collected from Odisha and deposited in various banks.
According to sources, the ED also filed charge sheet against Rose Valley Group’s CMD Gautam Kundu and six others.
“Kundu was involved in illegal collection of deposits of Rs 475 crore from the public of Odisha with the false promise of high returns and subsequently laundered these funds by transferring the same to other shell companies founded by him,” an ED official said.
Notably, Kundu was earlier arrested by ED, Kolkata and is presently in the judicial custody.
During its investigation, ED scanned over 3000 bank accounts and has succeeded in tracing and attaching Rs 332 crore liquid cash lying in various banks accounts of Rose Valley Group of Companies.
This is the biggest ever attachment of liquid cash by and government agencies in the country.
In January this year, the CBI had submitted an 86-page preliminary charge sheet in the Rose Valley chit fund scam at the Special Chief Judicial Magistrate’s court here, naming Gautam Kundu as the prime accused.
As per an estimated, Rose Valley allegedly duped Rs 475 crore in Odisha by duping people promising them of high returns.
Last year, a special court in Cuttack had ordered the state government to confiscate property worth Rs 63.64 crore belonging to the Ponzi firm Rose Valley Group in the state under the Odisha Protection of Interest of Depositors’ Act-2011.
The ED had found that the Rose Valley Group had floated 27 companies for running its chit fund operations out of which only half-a-dozen were active.
The Ponzi firm had floated the schemes promising gullible investors in various states returns of between 8 and 27 percent on their investments.