ED attaches fresh assets worth over Rs 260 crore in Rose Valley case
anti-money laundering
law in a case against Kolkata-based Rose Valley Group accused of duping numerous investors, the
Enforcement Directorate
said on Thursday.
A bungalow located at B/02/45, Charulata Project in Kolkata West International City along with shares of 32 "front" companies linked to the group have been provisionally attached after an order was issued by the agency under the Prevention of Money Laundering Act (
PMLA
) on August 13.
The action, the ED said, has been taken as part of ongoing investigations involving Rose Valley Real Estate and Constructions and associated entities.
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The federal probe agency had booked a PMLA case against the Rose Valley Group, its chairman
Gautam Kundu
and others in 2014. The trial in the case is ongoing and a number of such assets attachment orders have been issued by the agency in the past.
Kundu was arrested by the ED in March 2015.
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The attached assets, worth Rs 262.90 crore, have been identified as "proceeds of crime" generated through schemes that "illegally" and "fraudulently" collected investment from public, camouflaging as commercial schemes promising high returns.
The group collected funds worth Rs 17,520 crore by "falsely" promising land parcels or time-sharing in hotels, and in cases of non-delivery, assured refunds with interest rates of 18-24 per cent every year, the ED alleged.
Despite such assurances, an amount of Rs 6,666 crore remained "unpaid" to the investors, it said.
"To mask illicit activities and siphoning of public investments, the group layered and diverted these funds to multiple associated companies, acquired assets using these proceeds, and issued shares under the guise of equity infusion," the agency said.
A process of restitution of assets has also been initiated in this case by the ED on the directions of the Calcutta High Court.
The Asset Disposal Committee has so far completed 10 phases of disbursement of funds to the victims of the fraud and refunded a total amount of Rs 72.76 crore to 94,627 victims/ investors, the agency said.
Restoring properties to the victims of a fraud is a remedy available under the PMLA.
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