Rose Valley Scam:
Bengal seems to be a den of chit-fund scams. First, it was Saradha Scam, and then came even bigger, The Rose Valley Scam.

"Neither the rose smell sweet nor does this valley look green."
The Rose Valley scam was an old-fashioned Ponzi scheme. The money was primarily accumulated by raising small investments in the rural areas of at least half a dozen States. The investors were given the choice of opting for a holiday package or "a return on the investment with annualized interest at 11.2% to 17.65%".

Rose Valley had 27 fake companies to run this Chit fund scam in WB, Assam and Bihar. A portion of the money was also used to bribe politicians so that the scam could run smoothly. But when various investors started to not receive their due payments, too many complaints got lodged and local authorities alarmed SEBI in 2013.

While on one hand, Rose Valley was funding Bengali movies and KKR's sponsorship, SEBI was investigating the 17000 Crore Scam. Soon company's Promoter Gautam Kundu, the company's balance sheet and expenditures made the SEBIs case stronger.

In 2015, Rose Valley chairman Gautam Kundu was arrested in a money laundering case and probed by the CBI and Enforcement Directorate. The government froze all the 2,600 bank accounts of the Rose Valley Group, which held around Rs 800 to 1,000 crore.

During the investigation, it was found that Rose Valley Group had given over 500 Cr loans to its promoter Gautam Kundu.

As of now, for a total of 22 Lakh investors, almost 11,000 Crore has been recovered while SEBI is trying to sell various assets of directors and groups in order to recover investors' hard-earned money.

свернуть