The Central Bureau of Investigation (CBI) has filed a supplementary chargesheet against the Rose Valley group chief Gautam Kundu and others in a chit-fund scam of ₹464.8 crore.
Among those arraigned are the group’s former managing director Shibamoy Dutta, then directors Ashok Kumar Saha and Ram Lal Goswami, Rose Valley Hotel & Entertainment Limited (Kolkata).
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Earlier, a chargesheet was also filed by the Tripura Police in January 2018. The CBI registered the case on October 18, 2019. They alleged that Rose Valley group head and others set up the company with the intention of cheating people.
They collected huge amounts of money in the form of deposits by issuing certificates in the name of booking rooms in hotels to a large number of investors in violation of the Companies Act, and the Securities and Exchange Board of India (SEBI) regulations.
As part of the group, the accused had also floated several other companies and diverted the funds through those loss-making entities. They also falsely publicised about the high profitability of the group to attract more investments.
A large number of agents, were appointed and lured into collecting public deposits on the promise of high percentage of commissions and incentives, in violation of the Companies (Acceptance of Deposits) Rules.
The accused ran an illegal money circulation scheme, which was banned under the Prize Chits and Money Circulation Schemes (Banning) Act. They also floated schemes offering phenomenal returns to investors, the CBI said.
“Business development meetings, seminars and competitions were held by the accused directors of the company with big agents and investors. In those meetings, they used to deliver speeches to motivate the investors and agents to collect more investments,” the agency said.
