April 16, 2024: The Securities and Exchange Board of India (Sebi) on April 15, 2024, announced the auction of 22 properties owned by Rose Valley Group. Scheduled for May 20, the auction aims to recover funds amassed by the company through illicit schemes targeting the public. The properties up for auction, including flats and office spaces in West Bengal, have a combined reserve price of Rs 8.6 crore.
The e-auction is set to take place on May 20 from 11 AM to 1 PM. Sebi has enlisted Quikr Realty to facilitate the sale of these properties. A dedicated committee will supervise the asset sale, with proceeds intended for investor repayments. Formed pursuant to a Calcutta High Court order in May 2015, the committee’s mandate is to oversee the process. Prospective bidders are advised to conduct independent inquiries into any encumbrances, litigations, attachments, or liabilities associated with the auctioned properties.
In June 2022, Sebi directed the attachment of bank accounts, shares, and mutual fund holdings of Rose Valley Hotels and Entertainment Ltd and its former directors to recover dues exceeding Rs 5,000 crore owed to investors. This action followed the company’s non-compliance with Sebi directives for investor refunds. In November 2017, Sebi ordered Rose Valley and its former directors to refund investors who had invested in the group’s holiday membership plans, deeming the schemes illegal.
These membership plans, promising returns, were deemed Collective Investment Schemes (CIS) by the company. Additionally, the Enforcement Directorate (ED) disclosed in March 2023 that assets valued at approximately Rs 150 crore were seized under anti-money laundering laws as part of an investigation into the Rose Valley Group.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
Email: dhwani.meharchandani@housing.com
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