Rose Valley chit fund scam: Rs 5 crore distributed to 7,346 victims

The Asset Disposal Committee (ADC) on Friday began restitution for victims of the Rose Valley chit fund scam as the first payout worth Rs 5.12 crore was handed over to 7,346 depositors.

In Short

• First payout distributed Rs 5.12 crore to 7,346 depositors
• Enforcement Directorate played a vital role in asset recovery and distribution
• Asset Disposal Committee began restitution process for Rose Valley chit fund victims

The Asset Disposal Committee (ADC) on Friday initiated the restitution process for victims of the Rose Valley chit fund scam. The first payouts, amounting to Rs 5.12 crore, were distributed to 7,346 depositors.

Presided over by ADC Chairperson Justice Dilip Kr Seth (Retd), the event underscored the Enforcement Directorate's (ED) vital role in recovering and disbursing assets.

Thanks to recent court-ordered funds, the ADC has processed 31,352 out of 28.10 lakh claims, with further efforts ongoing to ensure full reimbursement for all claimants.

During the event, the ADC, alongside the ED’s Joint Director and Assistant Director from Kolkata, expressed gratitude for the ED’s critical assistance in identifying and attaching the properties of the Rose Valley Group.

Justice Seth lauded the partnership between the ADC and the ED, emphasising how it overcame legal challenges posed by Rose Valley promoters and convinced the court of the claimants' merits, leading to successful restitution.

The Rose Valley scam, one of India’s largest financial scandals, involved a Ponzi scheme that duped thousands of investors with false promises of high returns and land offers.

The ED, supported by the Securities and Exchange Board of India (SEBI), led the investigation, freezing over 2,500 accounts and seizing high-value properties to secure reimbursements for defrauded depositors.