The Rose Valley Group of Companies and its promoters are the subjects of an ongoing investigation by the Directorate of Enforcement under the Prevention of Money Laundering Act of 2002, and further movable and immovable properties worth more than Rs. 54 Crore have been attached.
The properties that are attached include insurance policies in Gautam Kundu and his wife’s names, as well as buildings and land plots in West Bengal, Maharashtra, Madhya Pradesh, and Bihar that were discovered to have been purchased by Rose Valley Group companies using money taken from unwary investors.
The Prevention of Money Laundering Act, 2002’s requirements prompted the ED to open an inquiry against the Rose Valley Group’s entities and Chairman Gautam Kundu along with other individuals. Investigations have found that Rose Valley Group raised money from the general public by promoting fraudulent and false projects and then failed to make the required repayments.
Prior to this attachment, ED has previously seized and attached properties worth Rs. 1117.71 crore. There have been 1171.71 billion in attachments made to this case thus far.
The Rose Valley Group of Companies founder, owner, and chairman, Gautam Kundu, was detained by the ED in March 2015 and is still being held in judicial custody. In the case involving Gautam Kundu and other fraud beneficiaries, the ED previously filed two Prosecution Complaints. Arun Mukherjee was successfully prosecuted and convicted by the ED for the aforementioned fraud. He was given a 7-year jail term and a fine of Rs. 2,50,000. Further research is currently being conducted.
