Rose Valley Scam Victims will be compensated as Government hands over ₹515.31 crore to Asset Disposal Committee for compensation to investors duped in the Ponzi scheme.
In a much awaited step towards providing justice to lakhs of duped investors in the infamous Rose Valley Ponzi scam, the Government of India on Saturday handed over ₹515.31 crore to the Asset Disposal Committee, headed by retired Justice D.K. Seth. This committee has been tasked with identifying and returning misappropriated funds to legitimate claimants who lost their savings to the fraudulent investment scheme.
The funds were formally handed over by Union Minister of State for Finance, Pankaj Chaudhary, in the form of a demand draft. According to a press release issued by the Ministry of Finance, the ₹515.31 crore was earlier attached by the Directorate of Enforcement (ED) during its probe between 2015 and 2017. The amount was part of the ill-gotten money that had been laundered through a complex web of 2,987 bank accounts across the country.
Following thorough investigations and tracing of the money trail, the Enforcement Directorate froze and seized these accounts in compliance with legal procedures under the Prevention of Money Laundering Act (PMLA). The funds were subsequently converted into more than 700 fixed deposits after the Adjudicating Authority confirmed the attachments, the ministry said.
This major recovery is expected to benefit nearly 7.5 lakh victims, who form a substantial portion of the 31 lakh claims that have been submitted to the committee thus far. Earlier, the ED had released a separate sum of ₹22 crore, which was utilized to refund 32,319 verified investors.
|Also Read PIB news on this : Union Minister of State for Finance Pankaj Chaudhary hands over Rs. 515.31 crore to Asset Disposal Committee Chairman Justice D.K. Seth (Retd.) for restitution of properties to legitimate investors in Rose Valley Ponzi scam |
The Rose Valley scam, which came to light nearly a decade ago, is one of the largest Ponzi schemes in Indian financial history. The group, primarily operating in states like Tripura, West Bengal, Odisha, and Assam, lured unsuspecting citizens—many from economically vulnerable sections—with the promise of high returns on investment.
According to findings from the ED’s probe, Rose Valley Group entities raised a staggering ₹17,520 crore by offering schemes that promised either land parcels, time-sharing in hotels, or high-interest payouts upon maturity. In several cases, investors were assured that if the promised services could not be delivered, the invested amount would be refunded with substantial returns.
However, the investigation revealed that ₹6,666 crore, classified as “proceeds of crime,” remained unpaid to the investors. These unpaid amounts represent the fraudulent profits illegally retained by the company, which are now being recovered through legal means.
In addition to the ₹515.31 crore recently handed over, the Enforcement Directorate has already attached other movable and immovable assets belonging to the Rose Valley Group worth ₹1,172 crore. According to current market valuations, these assets are estimated to be worth more than ₹2,000 crore. The ED is in the process of liquidating these properties, and the proceeds will also be returned to the rightful investors through the Asset Disposal Committee.
The Ministry of Finance emphasized that all steps being taken are in line with legal frameworks and under the supervision of the judiciary to ensure transparency and fairness in the restitution process.
ED officials have registered five separate cases under PMLA against the Rose Valley Group across the four affected states. Prosecution complaints have already been filed in all cases before the Special Courts set up under the anti-money laundering law.
Speaking at the handover event, Minister Pankaj Chaudhary reaffirmed the government’s commitment to safeguarding the interests of ordinary citizens and ensuring that those who exploit the financial system are held accountable. “We are working tirelessly to return the rightful money to those who were misled and cheated by this massive financial fraud. Every rupee recovered will go toward compensating the victims,” he said.
The handover of this substantial amount marks a crucial milestone in the long-drawn legal battle to recover funds from fraudulent entities like Rose Valley. With several more assets yet to be liquidated, affected investors can expect further rounds of compensation in the coming months.
