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Looking to recover money lost in Rose Valley Group's investment schemes? The Securities and Exchange Board of India (SEBI) is offering a potential path to regain some losses. On May 20th, SEBI will conduct an e-auction to sell 22 properties owned by Rose Valley companies located in West Bengal. These properties include flats and office spaces and have a combined reserve price of INR 8.6 crore.
Rose Valley Group faced accusations of running illegal investment schemes that promised high returns. Following a Calcutta High Court order in May 2015, SEBI directed the company to refund investors in November 2017. The total investor dues amounted to over INR 5,000 crore.
As Rose Valley failed to comply with the SEBI directive, the regulator took further action. In June 2022, SEBI attached bank accounts, shares, and mutual fund holdings of Rose Valley Hotels and Entertainment Ltd and its directors to recover investor dues.
The Enforcement Directorate (ED) also launched an investigation into Rose Valley Group. In March 2023, the ED attached assets worth around INR 150 crore under the anti-money laundering law. The ED investigation revealed that funds were collected through a network of agents located in Assam, West Bengal, Tripura, Odisha, Jharkhand, and several other states. These "fake and fabricated" schemes promised high returns and qualified as Collective Investment Schemes (CIS) under regulations.
The May 20th auction presents an opportunity for investors to potentially recover some of their losses. A committee formed by the High Court will oversee the sale of these properties. The proceeds from the auction will be used to repay investors. However, interested buyers are advised to conduct thorough independent inquiries about the properties before submitting bids. This is crucial to identify any potential issues like encumbrances, ongoing legal disputes, or outstanding liabilities attached to the properties.
While the auction offers a chance for some recovery, it's important to consider the vast difference between the INR 8.6 crore reserve price and the total investor dues exceeding INR 5,000 crore. The sale of these 22 properties may only be a small portion of the overall amount owed to investors. Investors should stay informed about further developments in the case and manage their expectations accordingly.
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