The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth Rs 262.90 crore in the Rose Valley chit fund scam, intensifying its probe into one of the largest financial frauds in eastern India.
The Kolkata zonal office of ED confirmed the action under the Prevention of Money Laundering Act (PMLA), 2002. The fresh attachment, ordered on August 13, includes a bungalow in the Charulata Project at Kolkata West International City and shares of 32 front companies linked to the Rose Valley group.
According to officials, these properties have been identified as proceeds of crime generated through fraudulent investment schemes floated by Rose Valley Real Estate and Constructions Pvt Ltd and its network of associated entities. With this order, assets worth Rs 1,172 crore have already been attached or seized by ED in the case.
Investigators revealed that the Rose Valley group, headed by chairman Gautam Kundu, illegally mobilised deposits of nearly Rs 17,520 crore by luring investors with land parcels, hotel time-shares, and refund assurances at interest rates as high as 18–24 per cent annually. Despite these promises, deposits worth Rs 6,666 crore remain unpaid, which the agency has termed as proceeds of crime.
The ED statement added that the group layered public investments across multiple firms, diverted funds, and acquired assets to mask the scale of its illicit operations. Two prosecution complaints against Kundu and other associates are already pending before the Special Court under PMLA in Calcutta.
The latest attachment is seen as a step toward securing properties that may be liquidated to compensate lakhs of small investors, many of whom lost their life savings. The investigation stems from multiple FIRs registered by the West Bengal Police under the IPC for cheating and fraudulent collection of deposits.
In a significant milestone for one of India’s largest financial fraud recovery efforts, authorities have so far returned ₹55.45 crore to 72,760 victims of the Rose Valley chit fund scam. The latest disbursement of ₹10.05 crore, overseen by the Asset Disposal Committee (ADC) chaired by retired Justice Dilip Kr Seth, benefitted 11,883 depositors in the eighth phase of restitution. With over 2.3 lakh claims scrutinised, the process is being described as one of the most extensive fund recovery initiatives in the country, steadily converting attached assets into direct relief for affected investors across eastern India. The Rose Valley scam is among the biggest chit fund scandals in the region, impacting investors across West Bengal, Odisha, Tripura, and neighbouring states. Earlier, The Wave Andaman reported on the plight of the investors seeking compensation, highlighting the human cost of the fraud.
As investigations continue, ED officials maintain that their priority is to trace, attach, and ultimately recover assets to provide some relief to the victims of the multi-thousand-crore scam.
