Enforcement Directorate Secures Rs 19.40 Crore Restitution for Rose Valley Group Victims, Probes Multiple Fraud Cases

The Enforcement Directorate's Kolkata office has transferred Rs 19.40 crore to the Rose Valley Asset Disposal Committee for the restitution of defrauded investors' funds. Additionally, the ED investigates M/s Lichen Metals Pvt Ltd and M/s Vinayak Nirman Pvt Ltd for violations under the Prevention of Money Laundering Act.

The Directorate of Enforcement (ED), Kolkata Zonal Office achieved a major milestone on Friday by securing a restitution of Rs 19.40 crore for defrauded investors of the Rose Valley Group. The amount was transferred to the Rose Valley Asset Disposal Committee (ADC) following orders from the Special Court (PMLA), Kolkata, dated July 24 and August 17.

The ED sought the restitution of properties attached under the Prevention of Money Laundering Act (PMLA) through the Assets Disposal Committee formed by the High Court. Applying Section 8(8) of the PMLA, the ADC successfully obtained a court order for the release of attached properties, despite opposition from Rose Valley promoters.

The ED's investigation uncovered numerous properties linked to Rose Valley Group, leading to two PMLA cases. The first case involves properties worth Rs 12 crore, while the second pertains to properties valued around Rs 1200 crore. The Rs 19.40 crore restitution is a crucial step towards further recoveries. The court mandated that claimants execute a bond to refund the amount if required later.

In another significant move, the ED provisionally attached assets worth Rs 31.93 crore belonging to M/s Lichen Metals Pvt Ltd, following an investigation based on a CBI chargesheet. The company, in collusion with STC officials, fabricated import documents, resulting in wrongful gains through a forward exchange cover from SBI. These illicit gains were then funneled into the company's legitimate operations.

Meanwhile, in a separate investigation by the Allahabad Zonal Office, the ED provisionally attached Rs 4.05 crore from M/s Vinayak Nirman Pvt Ltd. The company allegedly used forged documents to claim tax deductions, causing significant losses to the government. The investigation is ongoing.

(With inputs from agencies.)