ROSE VALLEY

SCAM
(2013)
PRESENTED
BY
MINAL PAWAR
 ABOUT ROSE
VALLEY GROUP After the death of
Rose Valley was a Kajal Kundu in 2003,
small, Tripura-based the company was
firm that was started reinvented by Gautam
Kundu(Chairman) and
by businessman expanded to West
Kajal Kundu in Bengal, Odisha and the
1997. northeast.

1997 1997 2003

The initial business

was about selling
insurance, until he
got into the rose
plantation sector in
1997 under Rose
Resort and
Plantations.
 THE SCAM

 The Rose Valley financial scandal or simply Rose Valley Chit Fund
Scam was a major financial scam and alleged political scandal in India
caused by the collapse of a Ponzi scheme run by Rose Valley Group
which rocked state of West Bengal in 2013.
 The scam was even bigger than the Saradha scam and as per Enforcement
Directorate(ED) estimates Rs 17,520 crore was reportedly raised from
investors across India.
 As per ED, TCPs MPs as well as Bengali Actors were investigated for the
scam.
 The states affected by the scam were West Bengal, Assam and Bihar.

 The scam was processed by giving false promises of high returns on

investment with annualized interests. (SAME AS SARADHA SCAM).
 ANATOMY OF THE SCAM
1 2 3
1997 2003 2005-2010
Firm started Gautam Kundu
Amt. of Rs.1,275.73
by (Chairman)
Expansion of Business crores was raised
Kajal Kundu

6 2015 5 4 2013
2014
Gautam Kundu Investigation revealed
arrested for money
Case was suspicious
laundering registered expenditures

7 8 9 2019
2017 2018
Court directed to
Chart sheets filed & ED attached assets refund money to
Rs.40 crores seized worth Rs.300 crores depositors

10 2020
ED attached assets worth Rs.70 crores & Rose Valley
returned Rs.10,500 crores, ED sold assets of Rose Valley
Group to further compensate the investors.
  Gautam Kundu has been in jail till now
since March 2015.
 The CBI has filed chart sheets on over 80
people concerned with the scam.
 The CBI arrested Subhra Kundu, wife of
Rose Valley Group chairman Gautam
Kundu, in January 2021.
 In April 2021, the ED has taken

CURREN "possession" of assets worth Rs 304 crores

of properties of the Rose Valley group of
companies throughout West Bengal,

T Tripura and Odisha under the Prevention

of Money Laundering Act (PMLA).

STATUS
 In February 2021, Rose Valley official
Arun Mukherjee was convicted by Special
PMLA Court and has been sentenced to 7
years in jail.
 As per the ED Official, till now, the
amount of Rs.10,500 crores has been
compensated to the investors by
liquidating the company’s assets.
 Many of the investors have not yet been
compensated and the further investigations
are going on.
 CONCLUSION &
SUGGESTIONS
 Illiterate people consider Chit Funds as banks & hence prefer
investing in them as interest rates are higher and tenure is less.
 Financially unaware people are trapped, thus financial literacy is
must.
 Stay away from Chit Funds with little or no history.
 Verify the registration and policies/subscriptions of the Chit funds.
 Avoid such fraudulent temptations.
 Do not ignore red flags.
 LOOK FOR CHIT FUNDS AND NOT CHEAT FUNDS.
Thank you