In a significant development concerning the long-running Rose Valley chit fund scam, the Calcutta High Court has issued a crucial directive for a deeper financial probe. A division bench on Tuesday ordered the Serious Fraud Investigation Office (SFIO) to undertake a forensic audit of the properties attached from the Rose Valley Group.
Court Directs SFIO to Take Over Forensic Scrutiny
The bench, comprising Justices Rajarshi Bharadwaj and Uday Kumar, instructed the SFIO to conduct a detailed forensic examination of all assets seized from the controversial group. This move aims to bring greater transparency and technical expertise to the process of evaluating the value and ownership of these properties.
The court's order did not stop at the group's assets. In a parallel directive, the judges asked the SFIO to also examine the alleged financial irregularities raised against a committee that was itself appointed by the Calcutta High Court. This committee, headed by a retired high court judge, was set up in the aftermath of the massive scam to oversee aspects of the resolution process.
Union Ministry Asked to Grant Approval
Since the SFIO operates under the administrative control of the Union Ministry of Corporate Affairs, the division bench specifically directed the ministry to provide the necessary go-ahead for this comprehensive audit. This step ensures the investigation agency has the formal mandate to proceed with its forensic work on both fronts.
The Rose Valley case is one of the largest financial scandals in Eastern India, involving thousands of crores of rupees collected from the public. The latest judicial intervention underscores the ongoing complexities in untangling the web of transactions and recovering funds for the duped investors.
Implications of the New Audit Order
This order for a fresh forensic audit by a central agency like the SFIO signals the court's intent to address lingering questions about asset valuation and management. It brings a new layer of scrutiny to a case that has witnessed prolonged legal proceedings. The outcome of this audit could have substantial implications for the ongoing recovery and redistribution process aimed at compensating the victims of the scheme.
The hearing, which took place on Tuesday, has set the stage for a more intensive investigative phase in this high-profile financial fraud case, keeping the spotlight firmly on accountability and procedural integrity.
