First chargesheet in Rose Valley chit fund case filed

CBI makes chairman Goutam Kundu, MD director Shibamoy Dutta and directors Ramlal Goswami and Ashok Saha accused after recording 131 witnesses

The Central Bureau of Investigation (CBI), probing multicrore chit fund scam in Odisha, has filed its preliminary charge sheet against Rose Valley Group of Companies for duping investors of Rs 17,000 crore across country through various schemes.

In its 86 page charge sheet filed in the special CBI court in Bhubaneswar, the investigating agency named Goutam Kundu, chairman of the group, Shibamoy Dutta, managing director and directors Ramlal Goswami and Ashok Saha after recording 131 witnesses. They have been booked under 120 (B) (criminal conspiracy) and 420 (cheating), sources said.

Kundu was arrested last year by the Enforcement Directorate (ED) in Kolkata. While Dutta and Saha were arrested by the CBI earlier, Goswami is still absconding, sources said.

Three group companies named in the preliminary chargesheet are Rose Valley Real Estate and Construction Ltd, Rose Valley Hotel and Entertainment Ltd and Rose Valley Estate and Land Bank India Ltd. The probe agency has attached 257 documents.

Rose Valley, which had operations in 28 districts in Odisha, had duped investors of Rs 450 crore in the state, the chargesheet said. The company has 24 sister companies and 23 hotels.

The chit fund company had started its operation in 1997 in West Bengal and had acquired immovable properties of Rs 800-900 crore and movable properties of Rs 200 crore.

Sources said the company had flouted the guidelines of market regulator Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and Registrar of Companies (RoCs).

The Rose Valley Group was one of the sponsors of Indian Premier League franchise Kolkata Knight Riders, and were also the title sponsor of an international chess meet in Kolkata in 2012.

The CBI is probing money trail of 44 chit fund companies in Odisha on the direction of the Supreme Court.