Restitution of assets: Over 7,000 Rose Valley 'fraud' victims get money

A first-ever restitution of funds to the allegedly defrauded investors in the Rose Valley chit fund case has finally begun, with more than 7,000 people receiving Rs 10,200 each.

The Rose Valley asset disposal committee (ADC) handed out the funds to the first set of recipients in Kolkata on Thursday, the Enforcement Directorate (ED) said in a statement.

"The first phase of the long-awaited restitution process has begun, with 7,346 depositors receiving refunds at a rate of Rs 10,200 per claimant, totalling Rs 5.12 crore in the disbursed fund," the Central probe agency said.

The move to restitute or return the funds to the duped investors and victims of frauds like Ponzi schemes, chit funds and fake investment schemes came about after a special Prevention of Money Laundering Act (PMLA) court in Kolkata ordered for the same in August, enabling the release of Rs 19.40 crore to the ADC, marking the beginning of a "systematic repayment plan".

A total of 28.10 lakh claims have been registered, of which 31,352 have been processed and 7,346 depositors have now received the money.

The ED said an event was held to disburse or restitute the funds to the investors, where ADC chairperson justice Dilip Kr Seth (retd) "praised the continued cooperation between the ADC and the ED, underscoring the ED's critical role in identifying and attaching the properties of the Rose Valley Group".

"This collaboration has been instrumental in overcoming legal challenges posed by Rose Valley promoters and convincing the court of the merits of the claimants' case, ultimately paving the way for successful efforts for restitution," the agency said.

The ED said these funds, along with future recoveries, are being disbursed on a "pro-rata basis" or as otherwise directed by the special PMLA court.

The restitution process is expected to continue over the coming months as more claims are scrutinised and validated by the ADC. This initial phase highlights the commitment of the ADC to ensure prompt justice for defrauded investors and restoring their lost funds, it said.

Movable assets worth Rs 494 crore and immovable properties valued at Rs 1,069 crore -- spread across West Bengal, Odisha, Assam, and Tripura and West Bengal -- have been attached by the ED as part of this probe done under the anti-money laundering law.

It booked a PMLA case against the Rose Valley Group, its chairman Gautam Kundu and others in 2014. The trial in the case is ongoing. Kundu was arrested by the ED in March 2015, and continues to be lodged in jail under judicial custody.

"The Rose Valley Group collected funds from the common gullible public by floating fake and fictitious schemes and defaulted on the re-payments," the ED had said earlier.

The process to restitute the assets of the investors was ordered by the court under section 8(8) of the PMLA, which says if a property has been confiscated by the Central government (ED under the PMLA in this case), the special court has the power to direct restoration of the confiscated property to a claimant who has a legitimate interest in the property and has suffered a quantifiable loss as a result of an offence of money laundering.