Chit fund scam: OPID Court orders to attach properties of M/s Rose Valley worth around Rs 6.52 Crore

Bhubaneswar: Odisha Protection of Interests of Depositors (OPID) Court in Cuttack passed an order (3rd Ad-interim) to the authorities concerned to attach the properties of M/s Rose Valley Group of Companies worth around Rs 6.52 crore for the refund to affected depositors in connection with much-debated chit fund scam, today.

A source said that the Economic Offenses Wing (EOW) here earlier registered EOW Case No-15, dated-28.05.13 U/s 420/120-B/34 IPC written with Section 4, 5 & 6 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 against M/s Rose Valley Group of Companies and its Directors by taking over Soro PS Case No-182, dated-10.05.2013 on the allegation that Rose Valley Hotels and Entertainments was into unauthorised collection of public money by promising a high rate of interest.

The company was taking deposits by camouflaging the same as an advance payment for hotel booking under the holiday package and was issuing provisional certificates against it. The Rose Valley group of companies without any authorisation either from RBI or SEBI had been collecting public deposits under its different schemes by opening about 65 branches in Odisha alone.

During the probe, at least five numbers of chargesheets were submitted in connection with the case U/s 420/406/467/468/471/120-B IPC r/w. Section 4, 5 & 6 of PCMCS (Banning) Act, 1978 and Section 6 of OPID Act, 2011 against M/s Rose Valley group of companies, its Directors namely Goutam Kundu and Sibamoya Dutta and Regional/Branch Managers Bikramjit Bhoumik and Badal Kumar Kar.

A detailed probe into the fraud case is still underway. During the investigation, the movable and immovable properties created by the accused companies through its Directors out of the public deposits in their names as well as in the name of M/s Rose Valley Group of Companies were traced and three nos of ad-interim proposals for attachment of those properties were submitted by the EOW under the provision of Section 3 of OPID Act. On the basis of said proposals, the state Finance Department had recommended ad-interim order for the attachment of properties.

The designated Court under OPID Act in Cuttack vide order dated-31.03.2023 has been pleased to make the 3rd ad-interim order of attachment in respect of Rs 6.52 crore absolute (Confirmed) and directed competent authority i.e ADM, Cuttack to recover/realise the amount from the bank accounts of the OPs companies under attachment along with interest accrued thereon for equitable distribution among duped investors/depositors.

Notably, the first and second ad-interim proposals had been made absolute earlier by the OPID Court, Cuttack involving both immovable and movable properties worth around Rs 95 crore.