Odisha court sends Rose Valley honchos to judicial custody

Sambad English Bureau Published On : Sep 23, 2015 at 6:12 PM Updated On : Sep 24, 2015 at 11:17 AM

Reported by Santosh Jagdev
Bhubaneswar, Sep 23:

The special CBI court here today sent Shibamoy Dutta, Managing Director (MD) of Rose Valley group and Director Ashok Kumar Saha, arrested by the CBI in connection with the multi-thousand crore Odisha chit fund scam, to judicial custody.

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Shibamoy Dutta, MD, Rose Valley (OST Photo)

After the customary medical test, the two accused were produced at the CBI court this afternoon at the end of their seven-day remand period and then packed off to the Jharpada jail here after the court verdict.

The counsel for the accused said no bail petition had been moved in the CBI court on behalf of his client as the Bhubaneswar Bar Association members are on strike protesting the government decision to abolish the Odisha Administrative Tribunal.

“We will file the bail petition of our client after OAT issue is resolved,” the counsel added.

Meanwhile, the CBI has gathered some important information from the accused during their interrogation while they were on seven-day remand.

B Ghosal, investigating officer of Rose Valley chit fund scam case in CBI, said the duo along with the owner of the Ponzi company Goutam Kundu, had collected Rs 14,000 crore from the investors in India by opening 21 zonal offices and 800 branch offices located at various locations in different states.

The CBI officer said the accused had duped investors of a total of Rs 5,500 crore through various schemes launched by the company.

In Odisha, Rs 450 crore has been collected by the company from investors in Balasore, Puri, Dhenkanal, Khordha and Rourkela, he added.

“The company has immovable assets like land and building in Kharvela Nagar (Jagannath complex) in Bhubaneswar, Puri, Dhenkanal, Nabarangpur, Balasore and Rourkela,” Ghosal said.

While coming out of the CBI court, Shibamoy Dutta told newsmen that investors need not panic. “We have already filed a petition at the Guwahati High Court seeking its permission to allow us to form a disposal committee through which we can return the collected money by selling our assets worth Rs 35,000 crore such as land, resorts, hotels, buildings and projects of the company,” Dutta said.

He declined to give any further details on the issue saying the case is sub-judice.