Calcutta HC asks SEBI to submit report on funds returned to depositors of chit fund entity Rose Valley

Kolkata, Sep 19 (IANS) A division bench of the Calcutta High Court, on Friday, directed the Securities and Exchange Board of India (SEBI) to submit a detailed report to the court on the funds that had already been returned to the investors in the deposit scheme of the tainted Chit Fund entity Rose Valley Group.

The division bench of Justice Rajarshi Bharadwaj and Justice Shabbar Rashidi also directed the market regulator to include in the report the total property of the Ponzi entity confiscated so far, and how much proceeds have been recovered by confiscating that property.

The division bench also observed that since a forensic audit report on these matters is not available as yet, despite central agencies like the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) being involved in the matter, the market regulator would ultimately have to take the responsibility in preparing that forensic audit report.

The division bench observed that in the face of charges of irregularities against the committee headed by Retired Justice Dilip Kumar Seth, which was observing the process of returning money to the investors of Rose Valley Group, a forensic audit report was necessary.

The division bench also observed that since SEBI had a specialized accounts wing, the entity would be best suited to carry out the work of conducting the forensic audit in the matter.

To recall, in February this year, ED informed that that a fresh disbursal of Rs 2.29 crore (Rs 2,29,63,264) as refund to 3,652 deposits in the Ponzi scheme of West Bengal-based chit fund entity Rose Valley Group was completed in the last and fifth phase by the asset disposal committee headed by the Justice Dilip Kumar Seth (retired) and comprising officials of ED.

With this fresh disbursal, ED informed them, the total refund to as many as 32,319 depositors in Rose Valley schemes has touched Rs 21.98 crore (Rs. 21,98,26,744), according to a statement issued by ED on Friday.

--IANS

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