HC gives nod for transfer of seized cash in Rose Valley scam to depositors
Kolkata: The Calcutta High Court has given its nod to the Assets Disposal Committee (ADC) to transfer the cash seized by the Enforcement Directorate (ED) in the Rose Valley Group ponzi scam to the depositors while also permitting it to auction eight properties of the group.
A supplementary report of the ADC was submitted at the Bench of Justice Joymalya Bagchi and Justice Gaurang Kanth. The report revealed that the ADC has recorded that a sum of Rs 2,36,42,749 attached by ED along with accrued interest to the tune of Rs 19,40,19,426 has been transferred to ADC by ED. The ADC proposed to disburse the said seized cash through a ‘Scheme for Disbursement’.
Giving its approval to the scheme, the bench gave the following direction: “To maintain transparency, ADC is directed to upload the names of the depositors, their certificate numbers and the principal sum payable under the said certificates and the amount repaid to them in terms of the scheme. It shall be open to the representatives of the depositors and/or ‘M/s. Rose Valley Group of Companies’ to assist the ADC in disbursal of the funds”.
Further, the court also gave its approval to auction eight properties of the Group through SEBI. Regarding ‘Management of Rose Valley Companies’, the court noted that ADC is monitoring the activities of the businesses of ‘M/s. Chocolate Hotels Pvt. Ltd.’ and ‘M/s. Brand Value Communications Limited’. However, the counsel for Rose Valley Group of Companies and its former chairman, Gautam Kundu, contended that it is not within the remit of ADC to monitor the business activities of the companies. They contended that the business of the companies is being mismanaged and adequate returns are not being fetched which could be used to satisfy the claims of the depositors.
Observing that this issue would require further deliberation and hence be posted for further consideration on a later date, the bench directed the ADC to audit the accounts of the aforesaid companies and place on record the report of the auditors.
