The Rose Valley financial scandal or simply Rose Valley Chit Fund Scam was a major financial scam and alleged

political scandal In politics, a political scandal is an action or event regarded as morally or legally wrong and causing general public outrage. Politicians, government officials, party officials and lobbyists can be accused of various illegal, corrupt, unethic ...

in India caused by the collapse of a

Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...

run by Rose Valley Group. Rose Valley scam is one of the biggest financial frauds, which rocked the state of West Bengal in 2013. As per

Enforcement Directorate The Directorate of Enforcement (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance, Gover ...

(ED) estimates, Rs 17,520 crore was reportedly raised from investors across India. The all India small depositors association pegged the amount at Rs 40,000 crore. Few reports pegged the amount at over Rs 60,000 crore. The states affected by the scam were

West Bengal West Bengal (, Bengali: ''Poshchim Bongo'', , abbr. WB) is a state in the eastern portion of India. It is situated along the Bay of Bengal, along with a population of over 91 million inhabitants within an area of . West Bengal is the fourt ...

Assam Assam (; ) is a state in northeastern India, south of the eastern Himalayas along the Brahmaputra and Barak River valleys. Assam covers an area of . The state is bordered by Bhutan and Arunachal Pradesh to the north; Nagaland and Manipur ...

Bihar Bihar (; ) is a state in eastern India. It is the 2nd largest state by population in 2019, 12th largest by area of , and 14th largest by GDP in 2021. Bihar borders Uttar Pradesh to its west, Nepal to the north, the northern part of West Be ...

and

Tripura Tripura (, Bengali: ) is a state in Northeast India. The third-smallest state in the country, it covers ; and the seventh-least populous state with a population of 36.71 lakh ( 3.67 million). It is bordered by Assam and Mizoram to the east a ...

. The Rose Valley group had allegedly floated a total of 27 companies for running the alleged chit fund operations of which only half a dozen were active. It is alleged that the company had made "cross investments" in its various sister firms to suppress its liabilities towards investors. According to ED, a portion of the money was also used to bribe politicians so that the scam could run smoothly. The ED had frozen 2,500 accounts of the Rose Valley group and the agency suspects that there are many more to be tracked and frozen. In 2015, Rose Valley chairman Gautam Kundu was arrested in money laundering case and probed by the CBI and

. In the course of the investigation, the government froze all the 2,600 bank accounts of the Rose Valley Group, which held around Rs 800 to 1,000 crore. The name of AITC MP,

Actor An actor or actress is a person who portrays a character in a performance. The actor performs "in the flesh" in the traditional medium of the theatre or in modern media such as film, radio, and television. The analogous Greek term is (), li ...

Tapas Paul Tapas Paul (29 September 1958 – 18 February 2020) was an Indian actor and politician. One of the most celebrated actors of Bengali cinema, Paul is best known for his on-screen romantic collaboration with Mahua Roy Choudhury and Debashree Roy ...

too had surfaced during investigations as he was the director in the company. On January 25, 2019, CBI arrested Bengali film producer Srikant Mohta for duping Rose Valley Group by Rs 25 crore. Mohta's company

Shree Venkatesh Films SVF Entertainment Pvt. Ltd. is an Indian media and entertainment company headquartered in Kolkata, West Bengal, founded by Shrikant Mohta. Apart from producing and distributing Bengali language, Bengali films, SVF also distributes Bollywood and ...

has produced many award-winning films like Chokher Bali,

Memories In March ''Memories in March'' is a 2010 Indian drama film directed by Sanjoy Nag. The film stars Deepti Naval, Rituparno Ghosh and Raima Sen. The film is the effective exploration of a situation wherein a bereaved mother comes to terms with her late s ...

, Autograph,

Raincoat A raincoat is a waterproof or water-resistant garment worn on the upper body to shield the wearer from rain. The term rain jacket is sometimes used to refer to raincoats with long sleeves that are waist-length. A rain jacket may be combined with ...

and Iti Mrinalini.

References

External links

21st-century scandals Pyramid and Ponzi schemes Corporate scandals Financial scandals Scandals in India 2016 scandals 2014 scandals Crime in West Bengal Crime in Odisha Crime in Assam {{crime-stub