Government Allocates Rs 515 Crore for Rose Valley Ponzi Victims
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Synopsis
The Indian government has allocated Rs 515.31 crore to assist victims of the Rose Valley Ponzi scam. This significant step aims to provide restitution to approximately 7.5 lakh individuals affected by the fraudulent scheme, with funds seized from various bank accounts linked to the scam.
Key Takeaways
- Rs 515.31 crore allocated for restitution.
- Funds seized from 2,987 bank accounts.
- Approximately 7.5 lakh victims to benefit.
- ED investigating multiple PMLA cases.
- Rs 6,666 crore still unpaid to investors.
New Delhi, April 12 (NationPress) On Saturday, the government allocated Rs 515.31 crore to Justice D.K. Seth (Retd), the Chairman of the Asset Disposal Committee, which was established to restore properties to rightful investors affected by the Rose Valley Ponzi scam.
The Rs 515.31 crore was seized by the Directorate of Enforcement (ED) between 2015 and 2017, following a thorough investigation into the money trail that traced funds through 2,987 distinct bank accounts linked to the victims.
As per a statement from the Ministry of Finance, these bank accounts were subsequently seized in accordance with legal procedures and were transformed into over 700 fixed deposits (FDs) after the Adjudicating Authority confirmed the attachments.
Union Minister of State for Finance, Pankaj Chaudhary, presented a demand draft of Rs 515.31 crore to the committee, which is expected to assist approximately 7.5 lakh victims out of the 31 lakh claims filed with the committee.
Previously, the ED had transferred Rs 22 crore to the committee, which was utilized to reimburse 32,319 legitimate investors, as indicated by the ministry's statement.
It is noteworthy that the ED has also seized other movable and immovable assets worth Rs 1,172 crore (with a present market value estimated at over Rs 2,000 crore), which are in the process of being liquidated and refunded to the victims.
The ED is currently investigating five cases under the Prevention of Money Laundering Act (PMLA) against the Rose Valley Group across the states of West Bengal, Odisha, Assam, and Tripura. Prosecution complaints have been filed in all these cases before the Special Courts under PMLA.
Investigations under PMLA revealed that companies within the Rose Valley Group amassed funds totaling Rs 17,520 crore by enticing individuals, primarily from the lower strata of society, with promises of land parcels or time-sharing in hotels. In cases where they failed to deliver, a high-interest refund was promised upon maturity of investments.
Furthermore, it has been uncovered that out of this total, Rs 6,666 crore remains unpaid to investors, classified as proceeds of crime.
