Rose Valley Scam: The Securities and Exchange Board of India (Sebi) will auction 22 properties of Rose Valley Group companies to recover money raised from people through illegal schemes. The reserve price for this auction to be held on May 20 has been kept at Rs 8.6 crore. SEBI said in a notice on Monday that the properties that will be auctioned include flats and office places located in West Bengal. The e-auction will be held on May 20 between 11 am to 1 pm.
Total reserve price is Rs 8.6 crore
The total reserve price of these properties has been kept at Rs 8.6 crore. The Securities and Exchange Board of India said it has roped in Quikr Realty to help in the sale of properties. The committee will oversee the sale of assets and the money will be used to make payments to investors. The committee was formed following an order of the Calcutta High Court passed in May, 2015. According to the notice, bidders should obtain complete information regarding encumbrances, legal disputes, attachments and liabilities of the properties put up for auction before submitting their bids.
Why was the property confiscated?
The regulator has directed Rose Valley Hotels & Entertainment Ltd to recover total dues of more than Rs 5,000 crore from investors by June 2022. And the bank accounts as well as share and mutual fund holdings of its then directors were ordered to be attached. The move was taken after it failed to comply with SEBI directions to return funds to investors. It is noteworthy that in November 2017, the regulator had ordered Rose Valley and its then directors to return thousands of crores of rupees to investors who had invested money in the group’s illegal schemes. The Enforcement Directorate (ED) revealed in March 2023 that assets worth about Rs 150 crore had been attached under the Anti-Money Laundering Act as part of its investigation against Rose Valley Group. According to the ED, the funds were raised through ‘fake’ schemes through agents in Assam, West Bengal, Tripura, Odisha, Jharkhand and many other states.
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