Calcutta HC asks SEBI to submit report on funds returned to depositors of chit fund entity Rose Valley
Calcutta High Court Asks SEBI for Detailed Report on Rose Valley Chit Fund Refunds
In a key development, the Calcutta High Court has stepped in to push for more transparency in the Rose Valley chit fund scam. On Friday, a division bench led by Justice Rajarshi Bharadwaj and Justice Shabbar Rashidi ordered the Securities and Exchange Board of India (SEBI) to prepare a comprehensive report on funds returned to investors in this notorious Ponzi scheme.
The court wants SEBI to cover key details in the report, including the total amount already refunded to Rose Valley investors, the properties seized from the scam entity so far, and how much money the government has recovered by selling those assets. This move comes as part of ongoing efforts to hold accountable one of India’s biggest chit fund frauds, which duped thousands of people in West Bengal.
The judges also pointed out a major gap: there’s still no forensic audit report available, even though central agencies like the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have been probing the case for years. They made it clear that SEBI, with its expert accounts team, should take the lead and conduct this crucial forensic audit to uncover any irregularities.
This urgency stems from recent allegations against the committee overseeing the refunds. Headed by retired Justice Dilip Kumar Seth and including ED officials, the panel has faced criticism over its handling of the process. The court stressed that a thorough forensic audit is essential to ensure fairness and prevent further mismanagement in the Rose Valley Ponzi scheme refunds.
For context, the Rose Valley Group ran a massive illegal deposit scheme that cheated investors out of crores. In February this year, the ED announced the completion of the fifth and final phase of refunds. They disbursed Rs 2.29 crore to 3,652 depositors, bringing the total payouts to 32,319 investors to Rs 21.98 crore. This is a small but significant step for victims waiting years for their money back.
As the Rose Valley chit fund case continues to unfold, this court directive could speed up justice and recovery efforts. Investors and watchdogs alike will be eyeing SEBI’s response closely.
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