The Enforcement Directorate on Thursday attached assets worth Rs 1,250 crore including 6 hotels in its money laundering probe in the Rose Valley case. Earlier the ED had said that the Rose Valley scam was much larger in magnitude than the Saradha scam. A source in the ED had told PTI in November that the Rose Valley Case was probably as much as 6 times larger than the Saradha scam as the former had collected deposits worth an estimate of Rs 15,000 crore from the public. The source had further said that the public attention happened to focus a lot on Saradha scam as it happened to be high profile case.
According to Livemint, the ED had attached Rs 2,630 bank accounts of the Rose Valley group, which had resulted in a total cash deposit of RS 296 crore. The companies under the Rose Valley group had failed to pay back depositors in Odisha and owed people an overall amount of Rs 362 crore. Gautam Kundu, the group’s chairman had urged the Enforcement Directorate so that its 10,000 employees did not suffer.
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The Rose Valley conglomerate had always denied receiving any kind of public deposits and said that it sold the right to enjoy hospitality at its hotels. It was however reported that its agents collected deposits with a promise these rights could be cashed on maturity. According to reports, the Rose Valley Hotels and entertainment Ltd., the flagship firm of the group had Rs 1,800 crores in cash and equivalents in bank accounts during the end of March 2013.