In a major relief to lakhs of investors who had lost hope of recovering their money, the Enforcement Directorate (ED) has secured the release of Rs 450 crore, including interest, for restitution to victims of the multi-state Rose Valley chit fund scam, officials said on Thursday.
The Prevention of Money Laundering Act Special Court in Odisha’s Khurda ordered the release of Rs 332.76 crore – now valued at approximately Rs 450 crore – held as fixed deposits in various bank accounts. These funds, previously attached by the ED, will now be disbursed to rightful investors through the Asset Disposal Committee (ADC).
The Rose Valley Group, led by Managing Director Gautam Kundu, started one of the biggest Ponzi schemes across multiple states, including Odisha, West Bengal, Assam, and Tripura.
Thousands of investors had invested money in the scheme over a decade ago, lured by promises of high returns. However, the company collapsed, leaving them in financial distress.
The latest order from the Special Judge (CBI-I) under PMLA in Khurda, allows the ED to transfer the funds to the ADC for distribution. This is one of the largest restitution efforts undertaken by ED’s Bhubaneswar Zonal Office.
The ADC, chaired by retired judge Justice Dillip Kr Seth of the Calcutta High Court, was formed following a directive from the Court to oversee the fair distribution of assets to affected investors.
The ED has played a key role in facilitating asset attachment, possession, and disbursement, ensuring a smooth restitution process.
So far, around 31 lakh investors have registered claims on www.rosevalleyadc.com. The ADC has already processed over 32,000 claims, resulting in the disbursement of Rs 22 crore.
Meanwhile, more claims are being scrutinised, and investors who have yet to register have been urged by the concerned authorities to do so at the earliest.
The restitution process will continue in the coming months, ensuring that investors across the country finally receive their rightful dues.
