The chit fund scam of Saradha group of industries has raised thousands of Bengal’s investors who have invested their money on similar budding companies of Bengal from slumber. They have started queuing in front of the offices of such promising companies for liquidating their chit fund investments before maturity. However, the investors have been denied cash payment. Instead, they were given written assurance that their hard earned money is in safe hands and will be given back to them in due course of time, thereby causing the investors to lose their faith on such companies.
Rose Valley is one of the top five companies of Bengal that is under the strict scan of SEBI or the Securities and Exchange Board of India for similar cause as that of Saradha group. As a matter of fact, Rose Valley’s stakes in West Bengal is about four times more than that of Saradha group and if the assumptions of the market regulating board of India, SEBI turns out to be true, then Bengal’s economy as a whole will be hard hit. It will result in robbing off the savings of millions of hard working and innocent investors of Bengal.
SEBI has confirmed the fact that Rose Valley controls two investment companies under its banner and these two investment firms have collected as much as INR 4000 crores from investors all around Bengal. Though SEBI had issued preventive order against Rose Valley in 2011, but this organization has contested such restrictions on court and used different kinds of delaying tricks to stop SEBI from further investigation and in the meantime it has continued with its campaign of raising more investment from depositors. According to the investigators of SEBI, the real estate and construction division of Rose Valley could raise as much as 1270 crores from the market, whereas its entertainment and hotels division raised about 2900 crores.
In the month of March 2013, SEBI had even penalized Rose Valley with a penalty of 1 crore and filed an FIR against its officials due to their illegal practices. It had been probing about the fraud chit fund schemes going on in West Bengal for quite some time. As the market regulating body was aware of such fraud practices going on in the state, it has been persistently caveating the general public as well as the state government about the fraud schemes of the multi-functional business houses of Bengal through different media like newspaper advertisements and requesting the investors to take informed decision with their hard earned money.
The Chief Minister was also notified by SEBI about the fraudulent chit fund scheme going on in the state about two months back. However, she has not informed the media about the organization that was practicing it.
Rose Valley is under the scanner of the regulatory board right now and if the hypotheses of the authorities of the SEBI turn out to be true, then millions of Bengal’s investors are going to suffer. The investors have already started showing their discontentment by ransacking Rose Valley’s office in Kolkata yesterday. The who’s who of the organization has requested the investors to keep faith in them through an advertisement in the newspaper. However, report of the market regulating body is compelling the investors to lose their cool.