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After Saradha, next target should be Rose Valley: Sushil Modi

Rose Valley chairman Gautam Kundu said, "It is a free country. Anybody can say anything."

Probal Basak  |  Kolkata 

Coming down heavily on so-called "chit fund" companies based in Bengal, Bihar deputy Chief Minister, today said that after Saradha it was now the turn of

"They (Rose Valley) are collecting money in Bihar in the name of hotel booking in places like Barasat. They say, if the investors are not willing to avail the hotel service they will get back the money with high interest. Why on earth someone in Bihar will be interested in booking a hotel in Barasat (in North 24 Paragana district of West Bengal)?," Modi noted.

"Beside wrongdoing ,they are trying to earn credibility by sponsoring an IPL team like Kolkata Knight riders. After Saradha, the next target should be Rose Valley," he added.

Responding to the allegations, chairman said, "It is a free country. Anybody can say anything. We are in this business for the last 10 years. So we know what we are doing."


Incidentally, one of the companies is under the scanner of corporate affairs ministry for alleged wrongdoing. Earlier, SEBI stopped its illegal debentures.

After the Saradha scam broke out, Rose Valley wrote a letter to West Bengal Chief Minister Mamata Banerjee clarifying the group had assets worth Rs 10,000 crore and was geared to pay off investors, if need be. Despite the company's assurances, Rose Valley's offices at Tamluk in East Medinipur and Ranigunj in Bardhaman were vandalised by depositors and agents recently.

Also, much like Saradha, Rose Valley too has TMC link as party MP and tollywood actor Tapas Pal is one of brand ambassaors of the company.

"In Bihar no political party has any link to such companies. If any party person is involved in wrongdoing, the party concerned here should take action against the person," Modi said.

Modi also emphasised on the need for a Central legislation to curb such ponzi schemes. "There are state acts in many states. West Bengal too is introducing one. But there needs to be a central legislation to curb these chit funds," Modi said.

Pointing out that several West Bengal based-companies were operating in Bihar, he added, "The state finance department is taking action. But there are problems as most of the companies are registered in West Bengal," he said.

First Published: Sat, April 27 2013. 17:11 IST
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