What Did the Calcutta HC Demand from SEBI Regarding Rose Valley Fund Returns?
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Synopsis
The Calcutta High Court has instructed SEBI to report on funds returned to Rose Valley investors, raising concerns over the handling of the Ponzi scheme's assets. With ongoing investigations, accountability is paramount as the court seeks clarity on the recovery process for affected depositors.
Key Takeaways
- Calcutta High Court mandates SEBI to report on Rose Valley funds.
- Forensic audit deemed necessary due to alleged irregularities.
- SEBI has the expertise for conducting the forensic audit.
- ED confirmed a total of ₹21.98 crore refunded to depositors.
- Ongoing investigations by CBI and ED into the Ponzi scheme.
Kolkata, Sep 19 (NationPress) A division bench of the Calcutta High Court has mandated the Securities and Exchange Board of India (SEBI) to provide a comprehensive report to the court concerning the funds that have been returned to investors involved in the deposit scheme of the controversial Chit Fund entity Rose Valley Group.
The bench, comprising Justice Rajarshi Bharadwaj and Justice Shabbar Rashidi, instructed the market regulator to detail the total assets confiscated from the Ponzi scheme and the proceeds recovered from these assets.
Furthermore, the court noted the absence of a forensic audit report on these issues, despite the involvement of central agencies like the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED). Ultimately, it will be the market regulator's responsibility to prepare this forensic audit report.
The bench emphasized the necessity of a forensic audit report, particularly in light of allegations of misconduct against the committee led by Retired Justice Dilip Kumar Seth, which is overseeing the reimbursement process for Rose Valley Group investors.
Given that SEBI has a specialized accounts division, the court believes it is well-equipped to perform the forensic audit.
In February, the ED revealed that a new disbursement of ₹2.29 crore (₹2,29,63,264) for 3,652 investors in the West Bengal-based Ponzi scheme was completed in the fifth phase, led by the asset disposal committee under Retired Justice Dilip Kumar Seth and ED officials.
With this recent payout, the total refunds for approximately 32,319 depositors in the Rose Valley schemes have reached ₹21.98 crore (₹21,98,26,744), according to a statement from the ED issued on Friday.
Point of View
It is imperative to recognize that the Calcutta High Court's directive to SEBI highlights the ongoing commitment to transparency and accountability in financial matters. The affected depositors deserve clarity and assurance that their interests are being prioritized in this complex situation.
NationPress
20/09/2025
Frequently Asked Questions
What is the role of SEBI in the Rose Valley case?
SEBI is responsible for regulating the securities markets and has been directed by the Calcutta High Court to provide a report on the funds returned to Rose Valley investors.
Why is a forensic audit necessary?
A forensic audit is essential to investigate the alleged irregularities in the disbursement process and ensure transparency in the management of Rose Valley's assets.
How much money has been refunded to depositors so far?
As of now, the total refunds to approximately 32,319 depositors in Rose Valley schemes have reached ₹21.98 crore.
