The directorate of enforcement (ED) has disbursed ₹127.69 crore to 173,350 victims of the Rose Valley group scam as part of its ongoing restitution process, marking a significant step in one of eastern India’s largest chit fund fraud cases.
According to the agency, its Kolkata zonal office, in coordination with the asset disposal committee (ADC) constituted by the Calcutta High Court, has completed 16 phases of fund disbursement as of April 2026, aimed at returning money to investors defrauded by the group.
According to ED, the Rose Valley group, led by its chairman Gautam Kundu, illegally mobilised funds worth ₹17,520 crore from unsuspecting depositors from investors across West Bengal, Assam, Odisha and other states by promising high returns under a controversial Ponzi holiday-membership plan. Investors were lured with promises of land parcels, hotel time-shares, or, in cases of non-delivery, assured refunds at interest rates as high as 18%–24% per annum. Despite such promises, an estimated ₹6,666 crore remained unpaid to investors, constituting proceeds of crime.
Since initiating its probe in 2014, the agency has focused on tracing, attaching and safeguarding assets linked to the group. So far, properties worth about ₹1,568 crore—movable as well as immovable—have been attached or seized across multiple states, including West Bengal, Odisha, Assam and Tripura.
A major breakthrough in the restitution process came in April 2025, when ED handed over a demand draft of ₹517.54 crore to the ADC following orders from a special court in Bhubaneswar. This enabled the monetisation of attached assets and accelerated the refund process for victims.
In a recent development, ED and ADC have moved to modernise the claims and disbursement system by introducing artificial intelligence-based technology. The initiative received approval from the High Court on 31 March 2026, and is expected to significantly improve efficiency and transparency.
The ADC has partnered with Stock Holding Document Management Services Ltd to revamp the refund portal. The upgraded system will facilitate automated know-your-customer (KYC) extraction and multi-stage verification of claims, enabling faster processing and reducing delays in disbursement.
Officials say the new system is expected to substantially cut down the time required for processing claims, thereby accelerating payments to thousands of affected investors.
ED says it continues to investigate other chit fund scams in West Bengal and is taking legal measures to ensure timely restitution of assets to victims. The agency reiterated its commitment to working with the ADC to secure, monetise and return proceeds of crime to rightful claimants in a transparent and time-bound manner.
The Rose Valley case remains one of the most prominent financial frauds in eastern India, with enforcement agencies continuing efforts to recover and distribute funds to lakhs of affected investors.
CBI Arrests Tis Hazari Court Reader in ₹30,000 Bribe Demand Case
Moneylife Digital Team
24 April 2026
Central bureau of investigation (CBI) has arrested a reader posted with the additional sessions judge (ASJ-02) at Tis Hazari Courts in Delhi for allegedly demanding and accepting a bribe from a complainant to facilitate a bail...
Videocon Scam: ED Files Supplementary Chargesheet against UK Resident Sachin Dev Duggal
Moneylife Digital Team
22 April 2026
The directorate of enforcement (ED) has filed a supplementary prosecution complaint against UK-based entrepreneur Sachin Dev Duggal in connection with the ongoing money laundering probe linked to the Videocon group, related to...
Reliance Power CFO Ashok Kumar Pal Arrested in ₹136 Crore Fake Bank Guarantee Scam
Moneylife Digital Team
22 April 2026
The economic offences wing (EOW) of the Delhi police has arrested Ashok Kumar Pal, chief financial officer (CFO) of Reliance Power Ltd, along with two others for allegedly using forged bank guarantees worth over ₹136 crore to secure a...
Dnyanradha Multistate Society Fraud: ED Seizes Kute-linked Properties Worth ₹9.29 Crore in Mumbai, Pune
Moneylife Digital Team
22 April 2026
The Mumbai zonal office of the directorate of enforcement (ED) has taken possession of six immovable properties valued at about ₹9.29 crore in connection with the Dnyanradha Multistate Co-operative Credit Society Ltd (DMCCSL) fraud...
