KOLKATA: So far, complaints against Rose Valley were limited to restrictions on its raising money from the market. But the dimension has changed after two FIRs were lodged against the Gautam Kundu-run company early this week.
The FIRs were filed at Baguiati police station on October 21 — in both cases investors complained that they did not get back their money after maturity. One of the complainants says that he invested Rs 4.5 lakh with Rose Valley Industries against a promised interest of 18%, but neither got back the interest component nor the principal.
Unlike Saradha, where FIRs were registered by police, Enforcement Directorate cracked down on the company in May 2014 on a complaint by Securities and Exchange Board of India (Sebi) against alleged collective investment scheme run by Rose Valley Real Estate and Constructions Ltd under a scheme titled Ashirvad. The market watchdog barred Rose Valley from raising money from investors.
Based on the complaint, ED raided Rose Valley's corporate office and two more offices in Sector V, Salt Lake, over two days and seized two computer hard disks and Rs 37 lakh in cash. According to ED sources, the data in the hard disks contain information relating to fund generation and its distribution by Rose Valley group of companies.
"So far our investigation was based on the Sebi complaint only. Since three FIRs have been lodged it will strengthen our investigation," said an ED official on Friday. ED, which has already questioned Rose Valley chairman Gautam Kundu twice, is especially looking into the accounts of a few 'key companies' like Rose Valley Real Estate and Construction, which are already under the Sebi scanner. "There were complaints that the company was raising funds from the public in parts of the state in the name of selling plots of land," said an ED official.
Rose Valley had earlier argued that the money was being raised for real estate projects but Sebi was of the opinion that Rose valley was running collective investment schemes.
Sebi, which has already cracked the whip on Rose Valley, thinks that the company and its promoters have collected more than Rs 2,000 crore from a single company. "The entire Saradha Group has allegedly collected Rs 2,460 crore from the public. One company of Rose Valley has allegedly collected an almost similar amount," said the ED official.
Sebi had alleged that Rose Valley did not get any certificate of registration as required under Section 11AA of Sebi Act to collect money under collective investment schemes.
The company challenged the constitutional validity of Sebi in regulating collective investment schemes.
But Calcutta High Court dismissed a writ petition filed by Rose Valley.