In a significant development, the Directorate of Enforcement (ED) Bhubaneswar Zonal Office has successfully facilitated the release of Rs. 450 crore (approximately) in connection with the Rose Valley Group financial scam.
The funds, originally attached as proceeds of the scam, will be restituted to the affected investors following a court order from the Special Court (PMLA) in Khurda, issued on March 7, 2025.
The Rose Valley Group, led by its Managing Director Gautam Kundu, operated a Ponzi scheme that defrauded investors across eastern India, including Odisha, West Bengal, Assam, and Tripura. The funds had been frozen in various bank accounts as part of the ongoing efforts under the Prevention of Money Laundering Act (PMLA) to recover assets from large-scale financial frauds.
“This significant recovery highlights the Directorate’s relentless pursuit to combat economic crimes and ensure justice for the victims,” stated the ED Bhubaneswar Zonal Office.
The restitution process will see the frozen assets released and returned to the lawful claimants and investors affected by the multi-state chit fund scam. This landmark decision underscores the ED’s commitment to addressing financial irregularities and protecting the interests of the public.
Gautam Kundu was arrested in 2015 by the Enforcement Directorate as part of the broader crackdown on financial fraud in the country.
