The market regulator has once again barred Rose Valley from collecting money as investment in real estate and construction and repay the money collected from investors within three months
Market regulator Securities and Exchange Board of India (SEBI) has asked West Bengal-based Rose Valley Real Estate and Construction Ltd to wind up its collective investment schemes (CIS), issued through its real estate and construction unit, and repay money to investors within three months.
SEBI in an order, said, “….Rose Valley Real Estates and Constructions Ltd and its promoters/ directors, Gautam Kundu, Shibamoy Dutta, Ram Lal Goswami, Abir Kundu and Ashok Kumar Saha are directed to not to access the securities market and are further restrained and prohibited from buying, selling or otherwise dealing in the securities market till all collective investment schemes launched by Rose Valley Real Estates and Constructions Ltd are wound up and all the monies mobilised through it are refunded to the investors”.
Apart from these, Rose Valley has been asked to submit the 'trail of funds claimed to be refunded, “bank account statements indicating refund” to investors and “receipt from the investors acknowledging such refund.”
According to the SEBI order, the money collected by RVRECL through a scheme called 'Ashirbad' has increased to Rs2,016.32 crore from Rs1,358 crore during 1 April 2010 to 31 March 2011.
The scheme, SEBI points out, falls within the purview of the “collective investment scheme” definition of the market regulator.
Rose Valley had claimed that the CIS was discontinued in 2010.
Earlier in January 2011, SEBI had barred Rose Valley Real Estates & Construction from raising money from the public. The company was raising funds from the public in certain areas of West Bengal in the name of sale of plots of land under its Ashirbad scheme.
A Rose Valley spokesperson has however claimed that it will move to Special Appellate Tribunal (SAT) against the SEBI order. It would also question the figure of Rs2,000 crore of deposits that the market regulator claims it to have raised, says a report from the Hindu Business Line.
“Repayments are made every day and at present the company is yet to pay Rs175 crore of an earlier mentioned amount of Rs1,274 crore. The repayment would be made over the next three months in accordance with the SEBI order,” he said adding that there hasn’t been a single investor complaint against the company on non-repayment of dues.
However, SEBI in its order has mentioned that Rose Valley has till date not provided any documentary evidence to substantiate its claim that it has refunded the money to the investors.
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