- By Aditya Pratap Singh
- Mon, 15 Apr 2024 03:43 PM (IST)
- Source:PTI
The market regulator Sebi stated on Monday that it will be auctioning 22 properties of Rose Valley group firms for a total reserve price of Rs. 8.6 crores on May 20th to recover funds raised by the company from the general public by illicit schemes. The Securities and Exchange Board of India (SEBI) stated in a notification that the properties that are to be auctioned include flats and office spaces situated in West Bengal.
The e-auction will be held on May 20th from 11 a.m. to 1 p.m. The total reserve price of these properties is approximated to be Rs 8.6 crores, it said.
The market regulator stated that it had appointed Quikr Realty to assist in the sale of the properties. A committee will oversee the sale of the assets, and the money will be utilized to repay investors. The committee was established following an order issued by the Calcutta High Court in May 2015. As per the notice, bidders must conduct their inquiries into liabilities, litigations, attachments, and acquisition of the property being auctioned before submitting their bids.
In June 2022, the regulator ordered the freezing of bank accounts as well as shares and mutual fund holdings of Rose Valley Hotels & Entertainment Ltd and its then directors to recover the total dues of over Rs 5,000 crore from investors. The regulator had instructed them to return the money to investors, but they failed to do so. In November 2017, the regulator had directed Rose Valley and its then directors to return thousands of crores of rupees to investors who had invested money in the group's leisure membership schemes as they had declared those schemes illegal.
Various schemes were offered by firms with the promise of returns to qualify as a Collective Investment Scheme (CIS). Meanwhile, in March 2023, the Enforcement Directorate (ED) revealed that assets worth about Rs 150 crore were frozen under the anti-money laundering law as part of its investigation against Rose Valley Group. According to the ED, the money was collected by selling "bogus and fabricated" schemes through a chain of agents located in Assam, West Bengal, Tripura, Odisha, Jharkhand, and several other states.
(With PTI Inputs)
