Calcutta High Court Orders SFIO Investigation into Rose Valley's Attached Assets
The Calcutta High Court issued a significant directive on Tuesday. The court ordered the central government to instruct the Serious Fraud Investigation Office to investigate Rose Valley assets worth Rs 1,171 crore. These assets have been attached by the Enforcement Directorate across the country.
The division bench comprising Justices Rajarshi Bharadwaj and Uday Kumar gave this order. They directed SFIO to submit a comprehensive report within one month. The bench emphasized the urgency of this investigation.
Long-Pending Cases and Public Money
The court noted that Rose Valley-linked cases have been pending before Calcutta High Court since 2016. Justice Bharadwaj and Justice Kumar made a crucial observation about the attached assets.
The attached assets constitute public money in every sense, the bench stated clearly. They explained these funds are held in trust for restitution to victims. The court views this as money belonging to ordinary citizens who were defrauded.
Clarifying the Audit Mandate
Earlier, the bench had asked SFIO to conduct an audit. This followed allegations of bias against the asset disposal committee. However, SFIO raised objections before the High Court.
The statutory body cited jurisdictional trouble over conducting forensic audit of the committee. SFIO argued it cannot be called an office under relevant laws. The division bench provided important clarification in response.
No direction has been or is being issued to SFIO to conduct any audit of the Asset Disposal Committee per se, the bench clarified. Rather, the forensic audit mandate pertains squarely to the attached assets of Rose Valley Group.
The Scale of the Scam
The Rose Valley Group companies indisputably qualify as companies incorporated under relevant company laws. Their attached assets are valued between Rs 20,000 to 30,000 crore. These assets are presently under attachment by the Enforcement Directorate.
This massive corpus forms the center of the multi-crore chit fund scam. The fraudulent scheme has defrauded thousands of innocent depositors across multiple states. Many victims have been waiting years for justice and recovery of their funds.
Court Directs Full Cooperation
The Calcutta High Court issued specific directions to ensure the investigation proceeds smoothly. SEBI, CBI, ED, the Asset Disposal Committee, Rose Valley representatives, and depositors must extend unconditional cooperation.
These parties were directed to furnish all requisite documents within seven days of SFIO's requisition. They must provide electronic data, physical access, and necessary clarifications. The court emphasized that cooperation should be complete and timely.
Next Steps After the Report
The central government received specific instructions from the High Court. After perusing SFIO's comprehensive report, the Centre must take a decision. They need to determine whether SFIO should proceed with forensic auditing of the attached assets.
This order comes just one day after significant developments at the Supreme Court. On Monday, the apex court rejected the Enforcement Directorate's petition. ED had sought a stay on the High Court's forensic audit order, but the Supreme Court declined to intervene.
The Calcutta High Court's directive represents a crucial step forward in the Rose Valley investigation. Thousands of defrauded depositors await justice and potential recovery of their hard-earned money through proper legal channels.
