The Enforcement Directorate on Thursday held raids across four locations in Kolkata in connection with the Rose Valley chit fund scam. Officials, however, claimed the searches were part of routine operations.
The raids are underway in New Town, Dunlop and in the southern fringes of Kolkata. According to sources, the searches were held on the basis of certain revelations made by Rose Valley Group chairman Gautam Kundu who was arrested in 2015 and is currently in jail. Multiple chargesheets were filed in Kolkata and Bhubaneswar courts in this regard.
To gather more evidence in the money laundering case, various teams of ED officials searched the premises of Gautam Kundu’s wife Shubhra Kundi, besides the house of one former staff of Rose Valley and, his relatives.
The Rose Valley firm had reportedly floated 27 companies to allegedly run the chit fund operations. The ED has alleged that the scheme floated by the group promised investors in various states inflated returns.
In 2013, Sebi, the regulator for the securities market, had rapped Rose Valley Hotels and Entertainments Ltd and barred it from collecting money from investors. The market regulator found that the company had been running a collective investment scheme under the name of Rose Valley Holiday Membership Plan, for which investors were required to pay monthly installments for accommodation at the hotels and resorts owned by the company.